The government on Wednesday approved signing of updated Alternative Investment Fund Managers Directive (AIFMD) pact between markets regulator Sebi and the UK's Financial Conduct Authority after Britain's exit from the European Union.
The Financial Conduct Authority (FCA) regulates financial services firms and financial markets in the UK.
In order to establish adequate supervisory cooperation arrangements between EU and non-EU authorities, a bilateral pact was signed by Sebi with securities regulators of 27 member states of European Union (EU) including FCA in July 2014, an official statement said.
After UK's proposed withdrawal from EU, FCA informed Sebi that the existing AIFMD pact between Sebi and FCA which is currently anchored on EU law, will no longer apply directly in the UK, and therefore, suggested signing an updated pact with suitable modifications.
"FCA, UK had submitted to Sebi that no transitional measures would be available if the amended MoU is not signed before the date when the UK exits the European Union (Brexit), and requested Sebi to sign an updated MoU as early as possible," it added.
United Kingdom exited the EU on January 31, 2020.