The Financial Conduct Authority (FCA) and the Dutch Authority for the Financial Markets (AFM) have signed a formal agreement to work more closely together as financial services firms look to maintain a foothold in continental Europe.
The FCA states that since the UK announced its departure from the EU, “several financial institutions currently operating in the UK and the Netherlands have applied for a license to operate in the respective countries.”
According to the FCA, the agreement “builds on the tight bond the UK and Dutch authorities already have and it also develops the relationship in areas such as Fintech, a pro-active and data-led approach to supervision and encouraging proper behaviour within firms.”
The many known-unknowns is compelling the FCA to hedge their status. Contingent upon an agreement with Brussels, the FCA may, or may not, be well positioned to manage the shifting policy hurdles.
Andrew Bailey, Chief Executive of the FCA said they have always had a strong relationship with the Dutch. This agreement strengthens that relationship.
“Given the increasing interconnectedness of financial services markets, having close relationships with other countries’ regulators helps to ensure that we can protect consumers and maintain our oversight of firms and markets”
Merel van Vroonhoven, Chair of the AFM echoed Bailey’s sentiment say they see UK financial institutions moving to the Netherlands:
“Their choice for the Netherlands will impact our capital markets and trading infrastructure. The closer cooperation with the FCA will put us in a better position to protect investors and capital markets through the sharing of information and expertise to minimise risks.”