NYDFS Launches Regulatory Exchange With Bank of England

New York’s state financial watchdog launched a resource-sharing partnership with the Bank of England.

The Transatlantic Regulatory Exchange (TRE) lets the New York Department of Financial Services (DFS) and other regulators exchange staff, allowing for greater sharing of expertise and resources, according to a Monday (Jan. 13) press release.

The first TRE secondment will begin next month with DFS and the Bank of England exchanging senior staff with expertise in emerging payments and digital assets, the release said.

“We’re thrilled to partner with the Bank of England in this kind of exchange for the very first time, working together to strengthen regulatory frameworks, protect consumers and support innovation,” DFS Superintendent Adrienne Harris said in the release. “Connecting the two global financial capitals of New York and London is critical for regulatory harmonization in a world where financial services are not defined by geography.”

Sarah Breeden, deputy governor for financial stability at the Bank of England, said in the release: “By sharing our knowledge and learning from one another, we can better ensure that regulation supports global financial stability and safe innovation in payments and financial markets.”

The six-month secondment position was open to internal candidates at DFS with a background in digital payments, distributed ledger technology, virtual currency or digital assets. Secondments are extendable up to one year, based on the mutual agreement of both regulators, per the release.

“The secondees are expected to return to their home regulator where they can bring their enhanced insights, knowledge and experience to work on regulation of emerging financial services and technologies,” the release said.

Last month, Harris said her department would increase its scrutiny on banks, insurers and cryptocurrency companies doing business in New York amid an anticipated rollback of financial regulation on the federal level.

“We’re going to keep focusing on getting money back for consumers,” Harris said at the time.

Harris also said she would call on New York’s governor for additional power, if needed, to push back against the relaxation of federal regulation.