UK and China regulators discuss structure for financial projects

* Plans for funds, equity link plans progressing in spite of
Brexit * FCA and CSRC closely cooperating on governing framework * Details on governing contract may be announced in the
fall By Michelle Cost HONG KONG, July 30 British and Chinese
securities guard dogs are going over an arrangement that will pave
the method for landmark financial services projects between the
nations, sources stated, alleviating worries that Britain could be a.
less attractive partner for such deals after last month’s vote.
to leave the European Union. Britain’s Financial Conduct Authority (FCA) and the China.
Securities Regulatory Commission (CSRC) are working together on a.
regulative structure for a scheme for dispersing fund items.
in each other’s jurisdiction and a proposed London-Shanghai link.
for trading shares, 2 individuals with direct understanding of the.
matter stated.

Britain, house to the EU’s biggest finance sector, has been.
pushing in current years to deepen its monetary services ties.
with China, which has actually agreed to these and other cross-border.
financial services schemes as part of the UK-China Economic and.
Financial Dialogue (EFD) program. The UK’s previous Chancellor George Osborne and Chinese vice.
premier Ma Kai stated at last September’s EFD meeting in Beijing.
that they would explore the production of a London-Shanghai equity.
link and shared funds acknowledgment scheme, however neither federal government.
has offered further information. The formal cooperation in between the FCA and CSRC signals that.
the jobs are going ahead, with one source stating the.
conversations had stayed “extremely positive”.

Some market watchers had actually raised issues that leaving the.
EU, which puts in doubt the UK’s future access to the trading.
bloc and its “passports” to offer monetary services there,.
could scupper such tasks by limiting their possible scope.
and appeal. “So far none of the cross-border exchange efforts has.
been thwarted by the risk of Britain leaving the European.
economic area and the associated passporting rights,” stated.
Frederic Ponzo, managing partner at financial services.
consultancy GreySpark Partners in London. “What is clear is that the CSRC and the FCA will not stop.
cooperating after the vote to leave the EU,” he included.

A 2nd source stated the FCA and CSRC were checking out a.
governing arrangement similar conceptually to a memorandum of.
understanding (MOU) inked by the CSRC and the Hong Kong.
Securities and Futures Commission (SFC) prior to the launch of.
the Hong Kong-Shanghai stock trading link in November 2014. The Hong Kong-China MOU developed a structure for policing the.
scheme, including sharing trading information and collaborating on.
investigations, although it was not clear if a UK-China.
cooperation would be as far reaching, the sources stated. Details of the regulative arrangement might be announced at the.
next EFD conference in the Autumn, though this has actually not been chosen.
yet, both sources stated. One stated the UK and China might also.
reveal cooperation on so-called “fintech” efforts. Both stated, nevertheless, that Britain and China did not expect to.
reveal any significant brand-new monetary services initiatives at this.
year’s EFD conference, the date for which has actually not been set however will.
likely be held in October or November in Britain, a 3rd source.
said, while both nations analyse the ramifications of Britain’s.
leaving the EU. The FCA declined to offer comment. The CSRC, UK Treasury.
and Chinese Ministry of Finance did not react to demands for.

( Reporting by Michelle Cost; Extra reporting by Ben.
Blanchard and the Beijing newsroom; Modifying by Will Waterman).

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