HM Treasury equivalence and exemption determinations (update)

Following the UK’s departure from the EU, the UK will inherit the EU’s equivalence framework under the EU (Withdrawal) Act 2018. Some EU financial services legislation enables the European Commission to determine that, in specified areas of financial services activity, a third country’s regulatory and supervisory regime is equivalent to the EU’s corresponding regime. Equivalence determinations can help to reduce or eliminate overlaps in regulatory and supervisory requirements, and can provide firms with improved prudential treatment. In some areas, equivalence determinations can also facilitate the cross-border exchange of services and products.

Under this legislation, HM Treasury will be responsible for making equivalence and exemption determinations. The Financial Conduct Authority, Bank of England and the Prudential Regulation Authority will be able to provide information or advice in support of HM Treasury’s equivalence and exemption assessments.

This page provides further information on the operation of the UK’s equivalence framework.