UK and US finance industries join forces to propose a vision for closer regulatory cooperation
24 September 2020
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Leading representatives from the UK and US financial and related professional services industries have joined together to propose a united business vision for future UK-US regulatory cooperation and dialogue. The group’s proposals aim to help forge even closer links between the hosts of the world’s two foremost financial centres.
The paper is released on the same day that the group relaunches as the British American Finance Alliance (BAFA). BAFA’s recommendations seek to build on the success of the UK/U.S. Financial Regulatory Working Group (FRWG), announced by HM Treasury (HMT) and the U.S. Department of the Treasury (UST) in April 2018 .
BAFA argues that establishing the right parameters and repurposing the FRWG behind a long-term vision will enhance regulatory dialogue. In turn, this will reduce cross-border frictions between the UK and US; bolster cross-border investment; and support stronger economic growth and job creation for both countries.
“This is an important strategic opportunity for the US financial services industry to strengthen cross-border regulatory and supervisory cooperation between the United Kingdom and the United States,” said Kenneth E. Bentsen, Jr., president and CEO of the Securities Industry and Financial Markets Association (SIFMA). “We look forward to working with policymakers and regulators on both sides of the Atlantic on this moving forward.”
“In today’s economy, many barriers preventing cross-border trade and investment in financial and professional services are regulatory in nature. For our industry, achieving compatibility of regulatory standards is therefore essential to support growth on both sides of the Atlantic. A robust regulatory dialogue will help achieve this. It also presents an opportunity for the UK and the U.S. to work even more closely together in international regulatory forums to achieve shared priorities,” said Catherine McGuinness, Deputy Chair of TheCityUK, and Chair of Policy and Resources Committee for the City of London Corporation.
The paper examines regulatory cooperation in a trade agreement and the architecture for regulatory dialogue between officials and also between officials and BAFA. It also highlights significant areas where the FRWG can help deliver a forward-looking vision: market integrity, data transfer, FinTech, cybersecurity and operational resilience, prudential measures, market access barriers, global financial stability, market fragmentation, and audit and accounting.
The British American Finance Alliance (BAFA) is a coalition of 20 British and American trade associations and industry bodies representing both financial and professional services. It was formed in September 2018 as the UK-U.S. Financial and Related Professional Services Industry Coalition to ‘actively contribute to the overall trade and investment discussions between the UK and U.S. and offer specific industry input on issues such as the process underpinning the regulatory dialogue and its substantive priorities.’ BAFA day to day operations are co-supported by the Securities Industry & Financial Markets Association (SIFMA) and TheCityUK (TCUK).
Members of BAFA: Alternative Investment Management Association (AIMA), American Council of Life Insurers (ACLI), American Property and Casualty Insurance Association (APCIA), Association of British Insurers (ABI), Association of Chartered Certified Accountants (ACCA), Association for Financial Markets in Europe (AFME), Bankers Association for Finance and Trade (BAFT), Bank Policy Institute (BPI), British American Business (BAB), City of London Corporation, Coalition of Service Industries (CSI), Institute of Chartered Accountants in England and Wales (ICAEW), Investment Association (IA), Investment Company Institute (ICI), London Market Group (LMG), Re-Insurance Association of America (RAA), Securities Industry & Financial Markets Association (SIFMA), TheCityUK (TCUK), The Law Society of England and Wales, US Chamber of Commerce (USCC), UK Finance.