Collection

HM Treasury equivalence and exemption determinations

Information related to the UK’s framework for equivalence and exemption determinations in financial services.

• From: HM Treasury
• Published: 17 October 2019
• Last updated: 28 March 2022 — See all updates

Following the UK’s departure from the EU, and the end of the transition period, the UK has inherited 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 is responsible for making equivalence and exemption determinations. The Financial Conduct Authority, Bank of England and the Prudential Regulation Authority are 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.

The Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019 (S.I. 2019/541) provides powers for HM Treasury to make equivalence directions and exemption directions for the EU and EEA member states.

Information documents related to the UK’s equivalence framework

• Exemption Order under Section 38 of the Financial Services and Markets Act 2000 in respect of Norges Bank
  • 28 March 2022
  • Guidance
• Share trading obligation equivalence decision for Switzerland now in force
  • 3 February 2021
  • Guidance
• Memorandum of understanding: equivalence and exemptions
  • 17 October 2019
  • Policy paper
• Chancellor letter to Valdis Dombrovskis on financial services equivalence
  • 2 March 2020
  • Correspondence
• HM Treasury equivalence decisions for the EEA States – 9 November 2020
  • 9 November 2020
  • Policy paper
• Guidance Document for the UK’s Equivalence Framework for Financial Services
  • 14 January 2021
  • Policy paper

Published 17 October 2019
Last updated 28 March 2022 + show all updates

1. 28 March 2022

   Exemption Order under Section 38 of the Financial Services and Markets Act 2000 in respect of Norges Bank is now in force added

2. 3 February 2021

   Updated with: Share trading obligation equivalence decision for Switzerland now in force.

3. 9 November 2020

   Added new documents: 'Guidance Document for the UK’s Equivalence Framework for Financial Services' and 'HM Treasury equivalence decisions for the EEA States – 9 November 2020'.

4. 16 December 2019

   Equivalence directions link added.

5. 17 October 2019

   First published.