Access to Financial Services Markets Market access arrangements for financial services between the UK and Gibraltar The Gibraltar Authorisation Regime The condition of cooperation
In order to designate an activity as approved, HM Treasury will also need to satisfy itself that adequate cooperation between the Gibraltarian and UK authorities in respect of the GAR is taking place. ‘Adequate cooperation’ covers both the framework for cooperation and its practical implementation. Under the condition of cooperation, HM Treasury, the Government of Gibraltar, the UK’s Financial Services Compensation Scheme (FSCS) (also referred to in the Act as the ‘compensation scheme’ or ‘scheme manager’), and the appropriate financial services regulators in the two jurisdictions (FCA and PRA on the UK side and GFSC for Gibraltar) will work together to coordinate their regulatory, supervisory, and, if need be, insolvency activity to support the delivery of a well-functioning GAR.
	The terms of the cooperation among HM Treasury, the UK regulators and the FSCS, on the one hand, and the Government of Gibraltar and GFSC, on the other hand, will be set out in agreements, including in the form of memoranda of understanding, which will include, among other things, arrangements for the exchange of information. When assessing whether cooperation exists, HM Treasury will look at both the existence and the practical implementation of these agreements.
	To complement the condition of cooperation put on Gibraltar entities, the Act sets out a number of duties on UK regulators and FSCS to adequately cooperate with Gibraltar entities (i.e. both the Government of Gibraltar and GFSC) and HM Treasury for the purpose of the good functioning of the core mechanisms and principles of the GAR and to enable HM Treasury to fulfil statutory reporting duties to Parliament.
	Mutual obligations on cooperation between the UK and Gibraltar regulators for the purposes of the cooperation condition will cover both business-as-usual supervision of Gibraltar-based firms, and circumstances where the UK regulators intend to use their powers of intervention, which are described below.