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21 May 2001

UK ADOPTS REGULATORY CO-OPERATION WITH ARGENTINE FINANCIAL SERVICES SECTOR

UK and Argentina have signed a Memorandum of Understanding which will ensure greater co-operation in tackling the abuse of financial rules and regulations.

The agreement was signed by Miss Melanie Johnson, Economic Secretary to the Treasury, Sir Howard Davies, Chairman of the Financial Services Authority, and by Mr Carlos Weitz, Chairman of the Comision Nacional de Valores of Argentina.

The Memorandum of Understanding also opens the way for UK investment service firms to access the domestic Argentine market, and for Argentine securities to be traded on the UK exchanges. The volume of cross-border business should rise accordingly to the benefit of UK and Argentine investors and markets.

NOTES FOR EDITORS

1. Under the Financial Services Act 1986, which remains in force for the time being, HM Treasury is formally responsible for managing requests for assistance from overseas regulatory authorities, most of which are dealt with by the Financial Services Authority.

2. With the increasing globalisation of financial markets, regulatory authorities in different countries need to work closely with each other in order to combat breaches of rules, regulations and laws. Co-operation normally involves the exchange of regulatory information concerning market transactions, including confidential information, and information on who has done which deals with who and at what time. Co-operation may also extend to investigating on behalf of an overseas regulatory authority.

3. In Argentina the Comision Nacional de Valores fulfils a similar role to the UK Financial Services Authority. This Memorandum of Understanding deals with the investment services sector only.

4. Under Argentine law securities listed on Argentine exchanges can only be traded on foreign exchanges if a Memorandum of Understanding has been signed. An MoU is also required under Argentine law to enable foreign investment firms to do business in Argentina.

5. Bilateral Memoranda of Understanding are not required between EU Member States in order to provide for mutual assistance. Outside the EU, the UK regulatory authorities currently have in force bilateral Memoranda of Understanding with the US, Australian, Swiss, Hong Kong, Japanese, Chinese, Russian and Turkish authorities.

6. Media enquiries should be addressed to Simon Moyse in the Treasury press office on 0207 270 5192.

7. If you have access to the Internet, you can find this news release and other Treasury information at www.hm-treasury.gov.uk