BOE to allow all regulated UK financial market infrastructures and specified service providers (FMIs) to resume dividend payments
A letter by BOE deputy governor, Jon Cunliffe:
We wrote to all regulated UK Financial Market Infrastructures and specified service providers ("FMIs") concerning the distribution of profits given demands arising from Covid-19 on 4 June 2020.In our letter we noted our expectation that FMIs discuss with us in advance of making any distribution to shareholders to reflect that FMIs face greater risks to their financial and operational resilience in that situation of high uncertainty.We have reviewed our expectations and concluded that these additional expectations are no longer necessary and have been removed with immediate effect. We will now return to the approach in place to consider dividend payments prior to the Covid-19 pandemic. Please discuss this with your supervisor if you have any questions about this.
If anything, this is but another checkmark in establishing the post-pandemic narrative.
