FCA and AFM agree on closer partnership

Licence applications

Since the UK announced its intention to withdraw from the EU, several financial institutions currently operating in the UK and the Netherlands have applied for a licence to operate in the respective countries. Close cooperation and information sharing between the FCA and AFM is vital to developing global markets, ensuring effective oversight of firms and capital markets, and allowing both to more effectively fulfil their roles as regulators.

The agreement builds on the tight bond the UK and Dutch authorities already have and it also develops the relationship in areas such as FinTech, a pro-active and data-led approach to supervision and encouraging proper behaviour within firms.

Strong relationship

Andrew Bailey, Chief Executive of the FCA said: ‘We have always had a strong relationship with the Dutch AFM and this agreement strengthens that relationship. Given the increasing interconnectedness of financial services markets, having close relationships with other countries’ regulators helps to ensure that we can protect consumers and maintain our oversight of firms and markets.’

Merel van Vroonhoven, Chair of the AFM said: ‘We are looking forward in working together in this partnership. We see UK financial institutions moving to the Netherlands, especially international regulated markets, other trading platforms and traders. Their choice for the Netherlands will impact our capital markets and trading infrastructure.  The closer cooperation with the FCA will put us in a better position to protect investors and capital markets through the sharing of information and expertise to minimise risks.’

Best practices

Alongside information sharing the FCA and AFM will also share best practice approaches, explore the scope for secondments between the regulators and expert training opportunities. These will foster even stronger and sustainable relationships between the regulators. 

The agreement will apply in a Deal and No Deal scenario, and will accompany the Multilateral Memorandum of Understanding between the FCA and EU regulators announced in February 2019.