The Guernsey Financial Services Commission (GFSC) has signed a memorandum of understanding (MoU) with the Bank of England to share confidential information about regulated entities and formally co-operate on other supervision activities.

The agreement was signed by GFSC director-general William Mason and Sam Woods, deputy governor at the Bank of England for prudential regulation and CEO of the Prudential Regulation Authority (PRA).

The PRA, which is a part of the Bank of England, is responsible for the prudential regulation and supervision of banks, insurers and major investment firms. It regulates nearly 1,700 financial firms.

Mason said: “There is a very productive and good relationship between the GFSC and the PRA, and we see this confirmation as good news for the Bailiwick, demonstrating that we are regarded as credible operators by our main counterparties.

“The MoU underlines the longstanding regulatory cooperation which has existed for a considerable period of time between the UK and the Bailiwick. It has been signed in the spirit of mutual co-operation and information exchange seen as crucial by the G20 countries and international standard-setters for financial services supervisors.”

Guernsey Finance chief executive Dominic Wheatley said: “A good relationship between regulators in Guernsey and the UK is important for financial services in the island and particularly as both parties seek to reposition the trading relationship post-Brexit.”

Guernsey Finance is the promotional agency for the island’s finance industry.