Memorandum of Understanding between the Bank of Italy, the Prudential Regulatory Authority and the Financial Conduct Authority

In August 2019, the Bank of Italy signed a Memorandum of Understanding (MoU) with the UK supervisory authorities: the Bank of England/Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA). The MoU will become operational when EU legislation is no longer applicable to the United Kingdom, once the transition period has ended. It is based on a template drawn up by the European Banking Authority (EBA) together with the European Central Bank and the national competent authorities, including the Bank of Italy, to meet the need for cooperation in the supervision of the banking sector and of investment services. The MoU is completed by a side letter, signed by the Bank of Italy only with the FCA, which extends the provisions (and integrates them where necessary) to those aspects pertaining to the Bank of Italy's responsibilities in the supervision of financial markets and asset management and in the verification of the obligations and prohibitions provided for in Regulation (EU) No 236/2012 on short-selling. The signing of the MoU and the accompanying side letter fulfil one of the conditions envisaged by the Italian and UK legislation for authorizing Italian intermediaries and market operating companies to operate in the UK and vice versa.