UNITED KINGDOM: MoU on Overseas Recognition Regimes

Wednesday July 16 2025

On 16^th July 2025, the Financial Conduct Authority (FCA) published an update on Overseas Recognition Regimes Memorandum of Understanding (MoU). This MoU sets out how HM Treasury, the Bank of England (BoE), the Prudential Regulation Authority (PRA) and the FCA will co-ordinate the discharge of their respective functions in relation to Overseas Recognition Regimes, including the making of Overseas Recognition Regimes determinations and the provision of regulatory advice.

Overseas Recognition Regimes are legislative provisions that allow HM Treasury ministers, with Parliamentary oversight, to designate the regulatory framework (the rules, supervision and, where relevant, enforcement) of the financial services of any country. HM Treasury is responsible for determining whether to designate an overseas jurisdiction under an Overseas Recognition Regime, where such a function is provided for in legislation. HM Treasury may make designations which are partial, time-limited, or subject to other conditions.

The Bank of England, the PRA and the FCA (the regulators) provide support to HM Treasury for matters relating to their regulatory functions, during the process of HM Treasury considering a new Overseas Recognition Regime designation. This includes the provision of advice to HM Treasury in connection with any consideration of a new designation under an Overseas Recognition Regime, or for reviewing an existing designation under an Overseas Recognition Regime.

HM Treasury and the regulators will maintain an appropriate level of engagement with overseas jurisdictions where Overseas Recognition Regime designations have been made to monitor changes to the regulatory framework and all other relevant aspects of that jurisdiction. Where relevant, cooperation arrangements between the UK and overseas finance ministries and/or regulatory authorities shall be set out in separate MoUs.

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