The tenth official meeting of the U.S.-UK Financial Regulatory Working Group convened in Washington, D.C., on September 3, 2024. The session included officials and senior staff from HM Treasury and the U.S. Department of the Treasury, alongside representatives from various independent regulatory agencies such as the Bank of England, Financial Conduct Authority, Board of Governors of the Federal Reserve System, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Securities and Exchange Commission.
The meeting underscored ongoing UK-U.S. cooperation across several areas: economic and financial stability outlooks; banking issues; digital finance and operational resilience; sustainable finance and climate-related financial risk; capital markets; and developments in the non-bank sector.
Participants began with a discussion on economic trends and market conditions. The UK Treasury highlighted its mission to deliver sustainable economic growth while providing stability to support growth in the wider economy.
On banking issues, participants reviewed developments in domestic banking systems and regulations. The UK presented findings from the Bank of England’s assessment of major banks' resolvability and progress on the Bank Resolution Bill. Emphasis was placed on maintaining dialogue among international partners for implementing reforms.
Sustainable finance discussions focused on climate-related disclosures for investors. Updates were provided on transition plan practices following recent endorsements by international bodies like IOSCO. Discussions also covered sustainability disclosure requirements for financial products and efforts to align supervisory expectations with international guidelines.
Digital finance conversations revolved around AI applications within financial services. Authorities discussed potential benefits and risks associated with AI, emphasizing international collaboration. Tokenization's role in capital markets was highlighted alongside regulatory measures to address related risks.
Operational resilience topics included regulation updates for critical third parties in the financial sector. Bilateral cooperation was stressed to promote responsible innovation through comprehensive supervision within digital finance sectors.
Capital markets regulation discussions followed observations on transitioning to a shorter T+1 settlement cycle in May by U.S participants. UK authorities updated their progress towards T+1 through expert groups aiming to reinvigorate capital markets for investment growth.
Non-bank financial intermediation (NBFI) discussions centered on fostering resilience within this sector. Participants reviewed agendas concerning money market funds and open-ended funds while noting continued international engagement through forums like FSB to address vulnerabilities from leverage in NBFI sectors.
Concluding the event, it was agreed that the Working Group would reconvene in May 2025 to continue dialogues on shared priorities.
Established in 2018, the U.S.-UK Financial Regulatory Working Group aims to deepen bilateral regulatory cooperation enhancing financial stability, investor protection, orderly markets, and capital formation across both jurisdictions.
