Policy paper: Joint EU-UK Financial Regulatory Forum

The fourth meeting of the Joint EU-UK Financial Regulatory Forum (the Forum) between the European Union (EU) and the United Kingdom of Great Britain and Northern Ireland (UK) took place in Brussels on 1 October 2025.

The meeting was co-chaired by the European Commission Director General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) and the HM Treasury (HMT) Director General for Financial Services. Participants attended from the European Central Bank (ECB), the European Supervisory Authorities (EBA, ESMA, EIOPA), the EU Single Resolution Board (SRB), the Bank of England (the Bank), and the Financial Conduct Authority (FCA).

Based on the shared objectives of preserving financial stability, market integrity, and the protection of investors and consumers, the EU and UK reiterated the value of strong and structured dialogue to advance financial services and regulatory cooperation. Beyond the Forum, both sides also noted the importance of continued cooperation in other areas, such as anti-money laundering and sanctions.

The Forum agenda focused around 6 themes, namely: (i) the policy, macro-economic and financial stability outlook, (ii) banking, (iii) capital markets, (iv) asset management, (v) digital finance and (vi) sustainable finance.  

The Forum participants took stock of the current macro-economic and financial stability outlook. While the EU and UK financial sectors remain resilient, downside risks call for close monitoring and surveillance of developments in global financial markets, including in the non-bank sector. Both sides reiterated the importance of cooperation and dialogue at international level, including in multilateral fora such as the Financial Stability Board (FSB). The UK set out Bank of England Governor Andrew Bailey's priorities as FSB Chair.

Participants also spoke about respective policy priorities to support economic growth and competitiveness. The European Commission updated on its strategy for the Savings and Investments Union (SIU), a key initiative to improve the way the EU financial system channels savings to productive investments. The UK updated on its competitiveness and growth agenda, including the Financial Services Growth and Competitiveness Strategy.  Both sides agreed that financial stability is a pre-requisite for sustainable economic growth, and the EU and UK will continue to work together to uphold international standards in support of economic growth and investment.

The session on banking included discussions on Basel implementation, securitisation and resolution. The EU and UK reaffirmed the importance of high international standards to ensure global financial stability, the proper functioning of global financial markets and the promotion of fair competition across jurisdictions. Both sides agreed to continue to discuss areas of common interest, including the implementation of the international standards on market risk.

The EU and UK exchanged views on developments to reform their respective securitisation frameworks while continuing to safeguard financial stability. The European Commission elaborated on its proposals from June-July 2025 which aim to improve the framework for securitisation in the EU. Both sides agreed to continue to exchange views as their respective securitisation frameworks evolve.

On resolution, the EU and UK emphasised the importance of effective resolution frameworks in a cross-border context and welcomed ongoing developments, including in the FSB, to operationalise open bank bail-in.

Participants exchanged views on recent capital markets regulatory developments including EU and UK efforts to better mobilise savings and deposits towards productive growth. EU participants updated on initiatives under the SIU to offer EU citizens broader access to capital markets and better financing options for companies. These initiatives aim to foster citizens' wealth while boosting EU economic growth and competitiveness. In this context, EU participants also updated on the adoption on 30 September of the Recommendation on Savings and Investment Accounts and the Communication on Financial Literacy. UK participants updated on measures to encourage both retail and institutional investment, including a new regime of targeted support and reforms to the Defined Contribution workplace pensions market. These measures aim to give better support to consumers looking to invest, drive greater levels of investment in productive assets and deliver better returns for UK savers.

On accelerated settlement (T+1), while each jurisdiction has its own independent processes for implementation, the EU and UK agreed to continue to coordinate closely as progress continues towards the agreed implementation date of 11 October 2027.

The UK provided an update on the Private Intermittent Securities and Capital Exchange System (PISCES) which provides an innovative framework for trading private company shares. The EU informed participants about a forthcoming public consultation that will collect views of stakeholders on a framework to facilitate inter alia investors' exits from private companies in the EU. Both the EU and UK provided an update on progress on a consolidated tape for bonds and equities in the two jurisdictions.  Participants also updated on latest developments regarding reforms to benchmarks regulation.

In the discussion under asset management, participants exchanged views on efforts to enhance the resilience of Money Market Funds (MMFs). There was recognition that both sides have benefitted from recent cooperation on their respective approaches to MMF reform and agreement to continue working together to increase the resilience of MMFs providing cross border services. Both sides agreed on the importance of implementing global standards to ensure the resilience of the funds sector. The European Commission updated on progress in the implementation of the Alternative Investment Fund Managers Directive (AIFMD) and UCITS Directive reform, while HMT and FCA updated on planned ongoing reforms to the onshored Alternative Investment Fund Managers Regulations (AIFM). Both sides exchanged views on sustainability-related disclosure obligations for financial market participants, including the Sustainable Finance Disclosure Regulation (SFDR) in the EU and the Sustainability Disclosure Requirements (SDR) in the UK. Finally, HMT provided a broad overview of the practicalities on the implementation of its Overseas Funds Regime (OFR), now that it is open to equivalent retail funds from the EEA. 

The EU and UK provided views and updates on recent developments in digital innovation in the financial sector. Participants agreed on the importance of leveraging the innovation and growth opportunities of digital assets, and of continuing coordinated work in international fora, such as the FSB, to better understand the global benefits and risks of digital asset innovation, including cross border activity. Participants exchanged views on issues related to cryptoassets, stablecoins, and developments in tokenisation and digital ledger technology, and shared updates on respective work underway to further support the safe adoption of these technologies. They reiterated the importance of aligning with the 2023 FSB Global Regulatory principles which help support innovation and maintain public trust and safety in money. They also agreed on the need to continue work via the FSB to avoid potential financial stability risks as stablecoin development and usage increases.   

The thematic discussions were rounded off with an exchange on sustainable finance. The European Commission updated on the Omnibus Simplification Package, a legislative initiative which aims to reduce administrative burdens and simplify regulations for businesses. The UK provided an update on the UK Sustainability Reporting Standards which aim to adopt, with minor jurisdictional changes, the International Sustainability Standards Board (ISSB) standards for the UK, as well as UK work on transition planning and finance. Both sides agreed on the importance of international coordination to ensure interoperability and consistency in sustainable finance standards. The EU and UK both reaffirmed their support for continued international dialogue and cooperation when it comes to sustainable finance standards.

The EU and UK noted the interlinkages between the EU and UK financial services sectors and the value of further discussion on shared challenges. Both parties agreed to follow-up, as appropriate, between now and the next Forum on topics discussed.