May 24, 2021

U.S.-UK Financial Regulatory Working Group Focuses on Bilateral Cooperation and Sustainable Finance

The U.S. Treasury published a joint statement on the priorities of the U.S.-UK Financial Regulatory Working Group. The Working Group includes officials from the U.S. Treasury and HM Treasury, as well as the Federal Reserve Board, the CFTC, the FDIC, the OCC, the SEC, the Bank of England and the Financial Conduct Authority.

The Working Group prioritized: (1) international and bilateral cooperation; (2) sustainable finance; (3) updates on domestic initiatives and priorities; (4) benchmark transition; (5) cross-border regimes; (6) operational resilience; and (7) banking and insurance.

Among these priorities, the Working Group described:

  • International and Bilateral Cooperation. The group examined the risks of regulatory fragmentation and data localization to the operational resilience of the derivatives clearing markets.

  • Sustainable Finance. The group updated U.S. progress towards sustainability-related financial disclosures and the UK's implementation of its Green Finance Strategy, as well as financial disclosures mandated by the Task Force on Climate-related Financial Disclosures.

  • Domestic Initiatives and Priorities. The UK's representatives outlined its future financial regulatory approach following Brexit under the Future Regulatory Framework Review and the Financial Services Act 2021.

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