The Bank of England (BoE) and the Financial Conduct Authority (FCA) have reaffirmed their commitment to coordinated supervision of the UK’s financial market infrastructures (FMIs). A joint statement released on 5 June 2026 highlights the effectiveness of their Memorandum of Understanding (MoU), which serves as the foundation for regulatory collaboration in this critical sector.
As noted in the update from the Bank of England, the MoU establishes a structured approach to joint oversight in the UK, enabling the two authorities to share vital information that enhances supervisory practices and policy development.
By fostering this exchange, the agreement helps avoid overlapping efforts, allowing regulators to operate more efficiently while maintaining high standards of market stability and integrity.
Under the terms of the MoU, the BoE and FCA conduct an annual review to evaluate the arrangement’s performance.
This process includes gathering direct input from the firms they oversee to ensure the framework delivers tangible benefits.
As part of the latest assessment, the regulators reached out to key FMI entities—including Central Counterparties (CCPs), Recognized Investment Exchanges (RIEs), and Recognised Central Securities Depositories (RCSDs)—seeking feedback on their experiences during 2025.
The response was overwhelmingly positive. Industry participants acknowledged the chance to share views and praised the strong alignment between the BoE and FCA across both policy initiatives and day-to-day supervision.
Firms expressed continued strong backing for the MoU, emphasising the value of proactive planning and close coordination between the two bodies.
Both regulators concluded that the current arrangements continue to work well, characterized by smooth collaboration and an absence of significant redundancies.
This assessment comes amid a complex global environment marked by economic uncertainties, swift advancements in technology, and evolving policy demands.
The authorities stressed that agile and robust teamwork is essential to navigate these challenges effectively.
Notable examples of successful joint efforts include responses to sudden market developments, as well as projects designed to drive innovation and operational improvements.
Initiatives such as tokenization of assets, the Digital Securities Sandbox, and the transition to T+1 settlement cycles have benefited from coordinated input. Similarly, progress on regulatory reviews—like the UK EMIR overhaul—and the final policy on operational incident reporting, outsourcing, and third-party arrangements (IOREP) for FMIs demonstrated the value of unified policymaking.
The statement also acknowledges the shared goal of lightening the regulatory load on firms.
Through better coordination, the BoE and FCA aim to deliver more impactful supervision while reducing unnecessary burdens.
Plans are now said to be underway to incorporate specific recommendations provided by industry respondents into future operations.
This latest review builds on previous evaluations, reflecting a maturing and adaptive regulatory relationship.
As financial markets grow increasingly interconnected and technology-driven, such partnerships play a pivotal role in safeguarding resilience, promoting efficiency, and supporting innovation.
The BoE and FCA‘s stance now signals greater overall confidence in their collaborative model and a clear intent to refine it further based on real-world feedback. The reinforced MoU framework positions the UK regulators to meet emerging demands in FMI supervision with greater coherence and effectiveness, benefiting market participants and the broader UK economy.