HM Treasury has published a memorandum of understanding with the Bank of England, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) setting out how they will coordinate their respective roles on Overseas Recognition Regimes, including jurisdiction assessments, designation decisions and the provision of regulatory advice. The MoU confirms that HM Treasury ministers, with Parliamentary oversight, determine whether to designate an overseas jurisdiction’s regulatory framework and may apply partial, time-limited or conditional designations, as well as amend or revoke designations in line with the relevant legislative provisions. When considering a new designation or reviewing an existing one, HM Treasury will normally request written advice from the relevant regulator(s) and agree upfront the scope, elements to be examined and a reasonable timeframe, while regulators may also recommend initiating an assessment or proactively provide advice. Regulators’ advice is expected to summarise significant differences in regulatory outcomes versus the UK and assess whether these could pose a material risk to the regulators’ statutory objectives; advice is to be treated as confidential during HM Treasury’s assessment process, subject to statutory obligations. Designations will be laid in Parliament via a Statutory Instrument under the negative procedure, accompanied by an Explanatory Memorandum and Impact Assessment, and regulators will decide whether to publish a summary of their advice, which is not expected to be released in advance of the designation. The MoU also covers engagement with overseas authorities, ongoing monitoring of designated jurisdictions and processes for initiating reviews of designations, and it may be reviewed at the request of HM Treasury or the regulators.
HM Treasury 2025-07-01
UK's HM Treasury, the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority set coordination framework for Overseas Recognition Regimes
HM Treasury issued a memorandum with the Bank of England, Prudential Regulation Authority, and Financial Conduct Authority to coordinate roles on Overseas Recognition Regimes. The MoU outlines procedures for jurisdiction assessments, designation decisions, and regulatory advice, with designations subject to Parliamentary oversight. It also addresses engagement with overseas authorities and ongoing monitoring of designated jurisdictions.