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Jun 10, 2019

UK and Dutch financial regulators sign agreement to protect financial markets

Move hopes to alleviate post-Brexit uncertainty for firms operating in both countries

Financial regulators the Financial Conduct Authority (FCA) and the Dutch Authority for the Financial Markets (AFM) have signed a joint agreement to protect and enhance the stability of the UK and Dutch financial markets.

Ever since the UK announced its intention to withdraw from the EU, a number of financial institutions operating in the UK and the Netherlands have been uncertain about operating in the respective countries – something this arrangement hopes to nullify.

It builds on the existing close financial relationship between the UK and Dutch markets and authorities, and also looks to develop relationships in areas such as fintech, a proactive and data-led approach to supervision, cutting red tape for listed companies and encouraging the best corporate standards within firms.

Andrew Bailey, CEO of the FCA, says in a statement: ‘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 we can protect consumers and maintain our oversight of firms and markets.’

Merel van Vroonhoven, chair of the AFM, adds: ‘We are looking forward to 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 of the Netherlands will impact our capital markets and trading infrastructure. Closer co-operation with the FCA will put us in a better position to protect investors and capital markets through the sharing of information and expertise to minimize risks.’