The Financial Conduct Authority (FCA) and the Insolvency Service have signed a Memorandum of Understanding committing the two organisations to increased collaboration.
The FCA and the Insolvency Service have strengthened ties after signing a Memorandum of Understanding (MoU) committing both organisations to increase collaboration around enforcement activities. In it’s 2016 Corporate Governance reform: green paper, the government outlined measures to strengthen the UK’s corporate governance framework. Part of that saw the government call for greater co-ordination between the FCA and the Insolvency Service.
The two organisations responded by reviewing their regulatory powers to take enforcement action against directors and companies operating contrary to the public interest before jointly signing a brand new MoU. The MoU establishes a framework of co-operation between the two enforcement bodies and commits the FCA and Insolvency Service to share relevant information in a timely manner, as well as robust coordination of enforcement activities where appropriate.
In particular, the MoU commits the Insolvency Service and FCA to share information relating to misconduct, investigations and enforcement so that the two organisations can better use their powers to tackle corporate and financial misconduct and the commission of financial crime.
Sarah Albon, chief executive of the Insolvency Service, said “While we conduct different activities and have different responsibilities, the Insolvency Service shares similar objectives with the FCA when it comes to tackling financial wrong-doing.”
“The MoU firmly establishes our relationship with the FCA and going forward we will endeavour to work closer together in order to put a stop to those companies and individuals who pay scant regard to the law and hurt economic confidence.”