On 1 February 2019, ESMA issued a press release, relayed by the Luxembourg supervisory authority, the CSSF, on the same day, announcing that Memoranda of Understanding (MoUs) have been agreed between EU/EEA securities regulators and the Financial Conduct Authority (FCA) of the United Kingdom, and between ESMA and the FCA.

Such MoUs form part of authorities’ preparations should the UK leave the EU without a withdrawal agreement, the no-deal Brexit scenario and will only take effect in the event of a no-deal Brexit scenario. The multilateral MoU (MMoU) between EU/EEA securities regulators and the FCA covers supervisory cooperation, enforcement and information exchange between individual regulators, including the CSSF and the FCA. It will allow sharing of information relating to, amongst others, market surveillance, investment services and asset management activities. This, in turn, will allow certain activities, such as fund manager outsourcing and delegation, to continue to be carried out by UK based entities on behalf of counterparties based in the EEA.