MoU

Memorandum of Understanding. A document outlining the terms and details of an agreement between parties, including each party’s requirements and responsibilities. The level of detail in the MoU and the extent to which it imposes legal obligations on the parties can vary significantly depending on the particular circumstances. In the context of financial regulation, MoUs can be used to set out a framework of understanding between regulators with similar or overlapping functions in the same or different jurisdictions. For example, in the UK, the FCA and PRA have entered into a MoU in respect of their respective regulatory responsibilities and, in the United States, the CFTC has entered into MoUs with the EU and many jurisdictions in relation to sharing financial information and other matters.