Guidance

Arrangements to facilitate the recognition of professional qualifications (accessible webpage)

Published 12 May 2021

Background

This guidance is for regulatory and professional bodies and provides information about arrangements, such as Mutual Recognition Agreements, Memoranda of Understanding, and other arrangements in respect of UK Free Trade Agreements, in relation to the mutual recognition of professional qualifications.

It supports such bodies across the UK to enter into bilateral or multilateral arrangements with their counterparts in the EU and the rest of the world, to enable the mutual recognition of professional qualifications.

The recognition of professional qualifications is a key facilitator of the provision of professional services in the UK and overseas. To support mutual recognition with EU and international partners, the UK government is encouraging and supporting regulatory and professional bodies to enter into arrangements which enable the recognition of professional qualifications between the UK and existing or potential international trade partners. There are numerous options for mutual recognition which regulatory and professional bodies can take, many of which are outlined in this guidance.

Regulatory and professional bodies across the UK may wish to consider what their priority international markets are for recognition arrangements. Recognition arrangements can open up access to overseas markets by helping UK-qualified professionals being able to practise their profession abroad as well as increasing inbound workforce supply and the appeal of UK qualifications internationally. These arrangements can also provide an efficient means for businesses and industries to address skills shortages.

The guidance specifically addresses:

• initiating the process for negotiating and implementing Mutual Recognition Agreements (MRAs) with international trade partners
• initiating the process for negotiating and implementing MRAs with EU trade partners using the MRA framework agreed under the UK-EU Trade and Cooperation Agreement (TCA) and future trade agreements
• upholding the commitments in the Common Travel Area (CTA) between the UK and Ireland
• other arrangements (in addition to MRAs) to facilitate mutual recognition with international counterparts
• domestic standards for recognition of international professional qualifications in the UK
• how the UK government can support regulatory and professional bodies to enter into recognition arrangements

References to ‘regulatory bodies’ includes both the bodies that control access to professions regulated in law (when access to the profession is limited by legislation to individuals who hold specific qualifications or experience), as well as those that are voluntarily regulated by professional bodies without underpinning legislation, e.g. some chartered professional bodies (where these require compliance with certain requirements and qualifications standards but do not restrict access to the profession generally).

This information is to assist regulatory bodies to understand the options for putting in place arrangements to facilitate the mutual recognition of professional qualifications. It remains up to the regulatory bodies whether they pursue any of these options, and all regulatory bodies are advised to seek their own legal advice on these issues.

Considering recognition arrangements

Negotiations for establishing recognition arrangements may be a lengthy and resource-intensive process. Before deciding to pursue international recognition arrangements, regulatory bodies are advised to consider their priorities and the resources available to them. For the near term, regulatory bodies could consider where the absence of a route to recognition for their profession in the EU could cause disruption to their sector, for example by limiting trade in services or adversely affecting access to skills for business. For the longer term, recognition arrangements offer opportunities to increase mutual recognition with and outside the EU.

Recognition arrangements are a useful tool which can facilitate the movement of professionals by ensuring that the recognition of professional qualifications is not a barrier, however there are other considerations which regulatory bodies should take into account when analysing the need for recognition arrangements. Regulatory bodies should first establish the outcomes they want to drive from their international work and identify the problem they are trying to address or opportunities they are trying to seize.

Regulatory bodies may then consider whether recognition arrangements alone will deliver on those opportunities or resolve outstanding issues and whether other factors such as work permits, visas and residency requirements need to be considered. Read further guidance on what businesses should consider when providing services in the EU Member States following the UK’s exit from the EU.

Regulatory bodies should also consider whether to negotiate bilateral or multilateral recognition arrangements. While negotiating bilateral arrangements may offer expediency and be a preferred option to minimise disruption to providing services, the TCA framework enables a framework for negotiating cross-EU multilateral recognition arrangements, which may offer wider market access.

When determining the role of recognition arrangements as a potential solution, there are several factors which regulatory bodies may need to consider when deciding on whether recognition arrangements may be suited to the needs of the professions and sectors they work with, including:

• trade flows of professionals requiring recognition between the UK and international jurisdictions
• numbers of overseas professionals for workforce supply
• reputation of the profession and qualifications associated with that profession
• future needs of businesses and professionals

The factors mentioned above may determine the type of arrangement regulatory bodies seek to agree and should therefore be considered as an initial step in the process. Where possible, regulatory bodies should consider how to use quantitative and qualitative evidence to support them in identifying key areas of work and consider the role of gathering data in the future.

Given differences in national regulation of professional qualifications and other requirements for the provision of services, it is likely that the above considerations may differ when UK regulatory bodies are considering potential arrangements with different countries. Therefore, regulatory bodies should consider the nuances between the jurisdictions they are considering engaging, how that affects desired outcomes and how that may determine the suitability of recognition arrangements.

Regulatory bodies may need to work with relevant businesses, professionals and other stakeholders, including the UK government and devolved administrations, to determine where recognition arrangements will have the most impact for their sector, where there is a demand and any other considerations such as third country routes to recognition, business practices and overarching Free Trade Agreements (FTAs).

The factors mentioned above may determine the type of arrangement regulatory bodies seek to agree and should therefore be considered as an initial step in the process. To embark on recognition arrangement negotiations, regulatory bodies should plan anticipated timeframes and establish the estimated costs involved. It would be advisable to consider whether any support or specialist expertise is required to successfully conduct negotiations.

When considering recognition arrangements, regulatory bodies may wish to conduct work on identifying areas of interest and carry out analysis to understand the global trade landscape in more detail. Regulatory bodies may wish to engage with their relevant UK government department or devolved administration for further discussion. For central co-ordination, as the policy lead for the regulation of professions in the UK, including the recognition of professional qualifications, the Department for Business and Trade has established a Recognition Arrangements team which can be contacted via: RecognitionArrangements@businessandtrade.gov.uk

Mutual Recognition Agreements (MRAs)

What is an MRA?

An MRA is a formalised agreement between two or more parties (usually regulatory bodies) which aims to facilitate mobility of professionals through agreed recognition, registration or membership processes. These agreements may provide a streamlined process by which professionals who have obtained professional qualification in their home jurisdiction, can apply for recognition to practise in another, host jurisdiction. Depending on the context of the MRA, parties may be able to decide to what extent the agreement will be binding on the parties. Regulatory bodies are advised to seek their own legal advice as applicable to the relevant sector.

By facilitating mutual recognition, MRAs may increase inbound workforce supply, facilitate overseas trade and the international appeal of UK qualifications by ensuring that the recognition of professional qualifications is not a barrier to professionals providing services internationally. Many MRAs have been previously agreed by regulatory bodies across the UK and their international counterparts, to achieve a variety of objectives. MRAs are typically agreed on a profession-by-profession basis.

Further guidance on the potential structure of a recognition arrangement can be found in Annex 1. Regulatory bodies will need to assess the appropriate approach to take in relation to the wording and form of an MRA based on their individual circumstances and seek independent legal advice.

Who is party to an MRA?

MRAs are typically agreed between two or more regulatory bodies from two or more different jurisdictions, to provide enhanced recognition for professionals in the jurisdictions regulated by each of the participating bodies. MRAs can be flexible in terms of the scope of the jurisdictions and the participating bodies covered by the agreement. Participating bodies may therefore agree bilateral or multilateral agreements.

Each regulatory body can be party to an individual MRA in their own right, however the government recommends that where there are multiple regulatory bodies operating in similar regulatory spaces, regulatory bodies coordinate their approach to international counterparts where possible to enable a coherent, UK-wide offer.

It may be more difficult to coordinate across those sectors where professions form part of similar regulatory spaces but are market competitors, for example for chartered professional bodies which award chartered titles and designations for the same or similar professions.

However, it is encouraged that some level of communication and cooperation exists in these circumstances.

The UK government stands ready to take advantage of the trade opportunities that are available to the whole of the UK. As with the UK’s approach to international FTAs, recognition arrangements to facilitate trade between the UK and other countries should, where practicable, be led by the interests of all parts of the United Kingdom. In line with the Memorandum of Understanding (MoU) and Supplementary Agreements on Devolution agreed between the United Kingdom government, the Scottish Ministers, the Welsh Ministers, and the Northern Ireland Executive Committee, a coordinated UK-wide approach to trade is a UK government priority, including when considering the pursuit of arrangements to facilitate the recognition of professional qualifications.

Where professions are regulated separately in the individual nations of the UK, there are additional factors which may be considered for recognition arrangements for those professions, subject to the right of each devolved government to regulate professions within their devolved competence as they see fit. In some cases, there are differences in the way in which professions are regulated across the UK, and as a result regulatory bodies in different parts of the UK will need to consider how to pursue consistent access for international professionals in all parts of the UK internal market.

To maximise opportunities, it is desirable to ensure that the level of access for UK professionals seeking recognition overseas and international professionals seeking recognition in the UK, is a coherent offer where possible. Coordination between regulatory bodies across the UK may also help facilitate negotiations for those participating bodies, by maximising the influence of the whole of the UK and offering routes to recognition across the UK’s markets. It is the responsibility of those regulatory bodies based across the UK to work collaboratively to agree a single recognition arrangement for their given profession, where possible. Regulatory bodies may also want to consider whether it is preferable for their international counterparts to coordinate, where applicable.

MRAs provide processes which allow for the streamlined recognition of professionals from the jurisdictions involved and are able to overcome differences in regulation. This should be considered and where possible applied, to the domestic coordination of such arrangements in the UK. As regulatory bodies may adopt different standards and procedures from one another, an MRA would need to have a tailored approach to accommodate these differences. It is advised that the parties consider how best to reflect this when entering into recognition arrangements with international counterparts and participating bodies should coordinate where possible before engaging international counterparts.

Professional qualifications across the UK are some of the most respected in the world and it is essential that as new arrangements are put in place to enable mutual recognition with international counterparts, that these qualifications continue to offer equally desirable access to international markets.

The UK government encourages all regulatory bodies across the UK to reach out to relevant international bodies to initiate discussions to facilitate the recognition of professional qualifications for their profession as soon as practicable. The Department for Business and Trade Recognition Arrangements team will be able to help facilitate the coordination of regulatory bodies across the UK and communication with relevant government departments.

For further information on the regulation of professions across the European Union, including contact information for relevant points of contact, regulatory bodies may also check the EU’s Regulated Professions Database.

Defining the scope and purpose of an MRA

Once the parties to an MRA have been determined and engaged, they can then begin negotiating the terms of an agreement, including defining its purpose and intention. This element of the agreement may outline the parties’ joint aims, including how the agreement considers assessment processes, regulatory autonomy, professional registration and permissions related to regulated activities in the jurisdictions involved. The details of an MRA will vary depending on the aims, processes and structures of the parties involved and should therefore be determined through open dialogue between parties on the level of ambition, and what is achievable through the mechanisms available.

Once the purpose of the agreement has been agreed and outlined, the scope of which professions and professional qualifications will be covered in the agreement needs to be determined. As there are differences in how regulatory bodies choose to regulate professions in their jurisdictions and sectors, an MRA may need to reflect this by outlining specific professions, professional titles, supporting qualifications and experience covered by the agreement.

It is common for participating bodies to conduct mapping exercises with regards to professional qualifications and standards. This may consist of listing the professions regulated by each participating body, the qualifications required to obtain professional status and any additional requirements which may be part of the process of gaining professional recognition. This mapping exercise may be useful to determine the scope of the agreement, but also to identify where there are regulatory alignments and misalignments. Identifying these similarities and differences may be helpful for determining the mechanisms which allow for mutual recognition between parties.

It may then be helpful for the agreement to use that mapping exercise to include a comprehensive list of the professions regulated in each jurisdiction which fall within scope of the agreement. It may also be useful to outline this information in a way which highlights the similarities between the titles, professions and professional qualifications which are regulated in both jurisdictions party to the agreement (for example, a table explaining what the ‘comparable’ professional title is for the regulatory bodies involved).

The parties involved may also wish to use this section to specify limits to the scope of the agreement (for example to qualifications gained within those regulators’ jurisdictions). Where regulatory bodies are entering into MRAs with multiple international partners, participating bodies may need to consider how to prevent the scope of an agreement unintentionally increasing through ‘daisy-chaining’.

For example, if a professional from country A has gained recognition in country B, and a regulatory body from country B then enters recognition arrangements with a regulatory body in country C, it may be preferable to exclude qualifications not gained in country B or C from the scope of the agreement. So, in this example, the professional with qualifications from country A would be out of scope of the agreement.

This will reduce the likelihood of the scope of the agreement going beyond that which is intended by each party and clarifies any potential ambiguities regarding the professional qualifications in scope. Doing so also prevents applicants from transferring exemptions from standard recognition processes that they may have gained from one MRA, into another MRA.

Provisions for mutual recognition

Once the purpose and scope of an MRA has been outlined and agreed in principle, the participating bodies may then wish to define how to best deliver on those ambitions through mechanisms and processes for recognition. This may involve the participating bodies agreeing consistent approaches to dealing with applications from the other jurisdiction, to ensure pathways to admission are clear, operable and fair for applicants. The following areas may need to be considered:

• local regulation and requirements
• application requirements
• compensation measures
• basis for recognition
• procedural oversight

When agreeing a process for recognition, nuances in local regulation should be taken into account for the recognising regulatory body and in particular, regulatory bodies may need to maintain an appropriate level of autonomy which allows them to take into account and comply with specific local legislation, regulations and other requirements in their jurisdiction. To ensure that pathways to admission are navigable and transparent for applicants, these local requirements should be made clear and it may be helpful to include them in the agreement.

It may be useful for the participating bodies to provide a breakdown of the requirements in each of the jurisdictions when considering applicants from the other jurisdiction. For example, for clarity a list of standard application requirements, evidence requirements and details on the process which should be followed by regulatory bodies when considering those requirements, may be included in the document.

The standard application requirements may include details on application forms, types of assessments and specific knowledge required from applicants when being considered for recognition. Supplementary evidence might consist of academic certificates / transcripts, work samples and proof of registration required from applicants when being considered for recognition. The assessment process may outline what the participating bodies are expected to do on receipt of an application in terms of communicating with the body in the home jurisdiction, to inform them of reviews being conducted and the timelines involved. It should be noted that the evidence required will vary depending upon the profession concerned.

As mentioned on standard application and evidence requirements, participating bodies may wish to consider introducing compensation measures where appropriate. Compensation measures are typically utilised where there are differences in qualifications between countries, to provide an avenue for the applicant to demonstrate that they have the required knowledge, skills and competence to practise the profession in the country they are seeking recognition despite the difference in their qualifications. Such measures are ordinarily not required in bilateral agreements but may be useful in multilateral recognition arrangements, to reflect a broader variation of professional qualifications.

Compensation measures can include a test of competence in the given profession or the completion of specific learning or additional training. While useful for helping to level standards, compensation measures do impose additional requirements on the applicant, which may be reciprocated across all participating bodies. Careful consideration should therefore be given to whether such measures are necessary to protect professional standards and the public, but also to ensure the process does not introduce unnecessary burden on the applicants or the participating regulatory bodies.

The agreement should also set out the intended basis for recognition which provides information on the specific types of qualifications, license or other requirements which are required by each participating party. This information may also naturally lead to outlining the type of access which is granted to applicants once the basis for recognition has been verified and any other regulatory requirements have been satisfied. Information on types of access should distinguish between any variation in access which participating bodies wish to agree, for example partial access or one-off service provision may be agreed for specific types of qualification or license.

Participating bodies may also want to consider taking actions to ensure that professional standards are being upheld on all sides of an agreement, through procedural oversight. Depending on the established procedures in the relevant profession, participating bodies may wish to consider agreeing regular visitations to oversee the regulatory procedures in place and to ensure the process for gaining access to the given profession is aligned to the terms of the agreement.

Legal considerations

Participating bodies will need to consider the legal implications of entering into an agreement. They will need to ensure that they have power to enter into the agreement and that everything within it is consistent with applicable legislation. They will also need to consider what safeguards need to be put in place to protect applicants, regulatory bodies themselves, consumers, service recipients and the public more generally. There are several areas with potential legal implications which participating bodies may consider including in an MRA:

• dispute resolution management
• appeals
• discipline and enforcement
• terms of the agreement, review and termination of the agreement
• information sharing and data protection requirements

Participating bodies may wish to agree working arrangements with regards to dispute resolution management. These arrangements may set out specific processes for resolving disputes or a light touch summary of the guiding principles which should be followed. These measures should be considered in the context of the role of the participating bodies in delivering the provisions for mutual recognition and general agreements on regulatory cooperation.

Dispute resolution management may be essential to determining what is expected of the participating bodies when the terms of the agreement are disputed and put in place processes for resolving these issues. A clear explanation of potential disputes and the governance structures put in place to handle issues with delivery, could help to ensure that participating bodies and ultimately applicants under the scope of the MRA, are treated fairly with clear, consistent processes. Arrangements for when disputes are unable to be resolved may also be considered, as part of the review or termination clauses for legal consideration.

In relation to appeals, participating bodies may have existing internal, local legislative requirements or regulatory processes on how appeals by applicants are dealt with. Arrangements may outline that the participating bodies could follow existing processes should they be sufficient or introduce additional mechanisms specifically for applicants under the MRA. Any appeals mechanism agreed within an MRA should take into account and comply with local requirements if applicable.

For applications made under the terms of the agreement, participating bodies may also agree specific arrangements for handling those applicants who have previous or ongoing professional sanctions against them, as well as for introducing new sanctions against existing professionals. Participating bodies may commit to sharing information on existing sanctions against professionals, including details of the sanction, its expiry and how it restricts practice.

Participating bodies may also establish a process for handling scenarios in which full disclosure of sanctions is not fulfilled by the applicant or associated participating body. Appeals against sanctions by applicants may also need to be considered as mentioned earlier in the document. To facilitate the agreement on sanctions, participating bodies may clarify or agree to the existing terms for disciplinary actions against professionals each participating body has in place. This is likely to be subject to local legislative requirements also, however it is important that the measures are adjudged to be satisfactory by each participating body.

In relation to the terms of an agreement, it may be useful to outline the period for which the agreement lasts, whether an indefinite or fixed duration, including whether the agreement may be superseded by future agreements. It may be useful to signpost any milestones for reviewing the content of the agreement and how the agreement interacts with any preceding arrangements in place between the participating bodies. It may also be useful to outline the terms and processes for extending the agreement to additional regulatory bodies, or professions.

The terms of the agreement can also include processes for termination, such as information on timelines and rules for participating in the MRA. For example, in a multilateral agreement it may be specified that all parties must withdraw to terminate the entire agreement, and if any parties remain, the arrangements continue for those remaining parties. How termination effects those applications which have been completed and those in progress may also need to be considered.

On information sharing, participating bodies may include provisions which highlight the specific areas which information sharing might cover such as changes in policy, legislation or processes which might impact delivery of the agreement. In relation to personal data of applicants, the agreement must align with current UK rules on data protection and data flows with international counterparts. For more information, please see the Information Commissioner’s Office guidance on using personal data in your business or other organisation.

It is important to remember that as the UK is a member of the World Trade Organisation, recognition arrangements with bodies in other countries could engage parts of the General Agreement on Trade and Services (GATS) and may need to be taken into account when considering and negotiating recognition arrangements.

It should be noted that all of the above information is intended to provide a guide outlining what potential elements of an agreement could be considered for inclusion in an MRA. Whether to use this information and the level of detail and scope of all of these sections will be for the participating bodies to decide. The UK government recommends that in all cases, independent legal advice is sought.

UK-EU Trade and Cooperation Agreement (TCA)

The Agreement (Article 158 and Annex 24)

The United Kingdom and the European Union have agreed a Trade and Cooperation Agreement, an Agreement on Nuclear Cooperation and an Agreement on Security Procedures for Exchanging and Protecting Classified Information. These Agreements are designed to honour the instruction of the British people – expressed in the referendum of 2016 and the general election in 2019 – to take back control of our laws, borders, money, trade and fisheries. It changes the basis of our relationship with our European neighbours from EU law to free trade and friendly cooperation.

The UK and the EU have agreed an MRA framework for the recognition of qualifications between the parties, which is based on the EU’s recent FTAs. The TCA does not affect the ability of regulatory bodies across the UK to maintain regulatory autonomy over standards of professional competence. It differs from earlier EU FTAs in some respects (for example the Canada-EU FTA - CETA). It streamlines the process for making joint recommendations and increases the possibilities for the types of arrangement which can be adopted by the Partnership Council (the governance body which oversees the TCA).

Under the MRA framework, regulatory bodies across the UK and EU Member States can come together to develop proposals for UK and EU-wide recognition arrangements which can then be submitted to, developed and adopted by the UK-EU Partnership Council (a ‘joint recommendation’). The Partnership Council will consider whether to agree the recommendation, with the aim of making the arrangements binding on the parties by annexing them to the TCA itself.

MRAs which are developed through the framework will be negotiated on a profession-by-profession basis and agreed across all of the UK and all 27 EU Member States. The MRA framework which has been agreed is a demand-led process which consists of 3 steps and will be driven by regulatory bodies and the Partnership Council.

The MRA framework that has been agreed in the TCA has increased flexibility for negotiating and agreeing MRAs across the 27 EU Member States. For example, it can facilitate arrangements which are based on the alignment of assessment procedures, rather than professional standards. This allows UK and EU regulatory bodies to agree reciprocal arrangements for handling applications from each other’s professionals, rather than having to conduct a full upfront assessment of how all UK and 27 EU Member States’ professional qualifications are comparable. This should improve the speed at which MRAs are negotiated and agreed.

This section will provide guidance on the process which regulatory bodies would need to follow, should they choose to pursue an MRA through the UK-EU TCA framework. Further details on the MRA framework in the TCA itself can be found in Article 158 and Annex 24 of the Trade and Cooperation Agreement between the United Kingdom of Great Britain and Northern Ireland, of the one part, and the European Union and the European Atomic Energy Community, of the other part.

The TCA also clarifies that the provisions on professional qualifications are without prejudice to alternative arrangements that the UK may agree with the EU, allowing for mechanisms to be agreed outside the TCA in the future. There is no requirement for regulatory bodies to use the TCA process, and the TCA provides one option for agreeing recognition arrangements, though it may not be the route all regulatory bodies wish to follow.

Joint recommendations

The first step under the MRA framework is for the regulatory bodies which are responsible for the regulation of the specific professions in the UK or EU to develop and provide joint recommendations on the proposed arrangements for facilitating the recognition of professional qualifications to the Partnership Council. A joint recommendation is a collective proposal between UK and EU regulatory bodies which may cover justifications for the proposed arrangements, details on the professions involved and other supplementary information to support the case for arrangements on mutual recognition.

To initiate the joint recommendation process, regulatory bodies across the UK or the EU should approach their regulatory counterparts to understand the level of demand for an MRA to facilitate recognition between their given professions or sectors. As MRAs under the framework are demand-led and to be agreed on a profession-by-profession basis, regulatory bodies must initiate this process themselves.

The regulatory bodies may then begin developing a joint recommendation to then submit to the Partnership Council. Joint recommendations will need to be supported by evidence-based assessments of two main elements of the proposal:

• the economic value of an envisaged arrangement on the recognition of professional qualifications
• the compatibility of the respective regimes, that is, the extent to which the requirements applied by each Party for the authorisation, licensing, operation and certification are compatible

It should be noted that although assessments of the above elements are required as part of the joint recommendation, there is no requirement for the assessment to articulate the economic case using specific analysis nor a close compatibility of the regimes of the bodies involved. Participating bodies should consider the most effective way to promote the economic value of their proposal and consider elements beyond trade, such as humanitarian, cultural and historic impacts of a potential agreement. Regulatory bodies are encouraged to engage with the Department for Business and Trade Recognition Arrangements team to help develop and pitch their joint recommendation. The TCA contains guidance in Annex 24 for regulatory bodies to consider when developing joint recommendations. For more detailed information see the Trade and Cooperation Agreement, page 439.

Annex 24 is split into 4 main sections, which outline the key elements participating bodies may consider as part of a joint recommendation, these sections are:

A. General Provisions, including a brief introduction to the guidelines.

B. Form and Content of an Arrangement including scope, conditions for recognition, procedural provisions, effects of recognition and administration.

C. Economic Value of an envisaged arrangement.

D. Compatibility of respective qualification regimes including assessment of scope, evaluation of divergence and recognition mechanisms.

The content of the guidelines should be taken into consideration. However, the guidelines aim to guide the factors which are considered in a joint recommendation rather than obligate participating bodies to provide certain information. Participating bodies should consider that there may be supplementary pieces of information which are not cited in the guidelines, which may reinforce the case for arrangements in a joint recommendation.

Joint recommendations must be developed by the regulatory bodies putting the recommendation forward, however the UK Government and devolved administrations may provide guidance to UK regulatory bodies where appropriate. The Department for Business and Trade would encourage regulatory bodies to contact the relevant government department or devolved administration as a first reference point for assistance.

The Partnership Council

The TCA establishes a set of committees to oversee its operation, including the Partnership Council and the Trade Partnership Committee. The TCA provides that these committees must meet at least once a year.

For the second step under the MRA framework, when the participating bodies are content with their joint recommendation they can take steps to submit their proposal to the Partnership Council. Participating bodies should contact the Recognition Arrangements team in the Department for Business and Trade, who will be able to assist with initiating the process of submitting a joint recommendation to the Partnership Council.

For the third step under the MRA framework, if an MRA proposal is developed, negotiated and finally agreed, the MRA will be annexed to the TCA. Once the agreement has been annexed to the TCA, if required, both the EU and UK will then need to make the appropriate domestic legislative changes to ensure the agreement is upheld by the relevant regulatory bodies and stakeholders in their respective jurisdictions.

It is important to note that the TCA acknowledges that the UK and EU can enter into other agreements regarding the recognition of professional qualifications outside of the MRA framework provided for in the TCA. UK regulatory bodies may also decide to pursue other mutual recognition arrangements independent of the framework in the TCA. All options should be considered by regulatory bodies to reach a decision which best suits the stakeholders involved in the arrangements.

The Common Travel Area between the UK and Ireland

The Common Travel Area (CTA) is a long-standing arrangement between the UK, the Crown Dependencies (Bailiwick of Jersey, Bailiwick of Guernsey, and the Isle of Man) and Ireland that pre-dates both British and Irish membership of the EU. Under the CTA, British and Irish citizens can move freely and reside in either jurisdiction and enjoy associated rights and privileges, including the right to work, study and vote in certain elections, as well as to access social welfare benefits and health services.

A Memorandum of Understanding (MoU) concerning the CTA was signed by the UK and Irish government in 2019, reinforcing both parties existing commitments to the CTA as the UK prepared for exiting the EU. The MoU states that recognition of professional qualifications ‘is an essential facilitator of the right to work’ and therefore, both the UK and Irish government have agreed to ensure there are adequate routes to recognition for qualified professionals across the UK and Ireland.

To uphold the CTA commitments, both the UK and Irish governments are encouraging their respective regulatory bodies to engage with their regulatory counterparts, to ensure that arrangements are agreed and in place to allow for the continued recognition of professional qualifications.

There are different options for agreeing recognition arrangements available to regulatory bodies, which this guidance outlines; formal MRAs, MoUs, or other unilateral arrangements. It is the responsibility of the regulatory bodies to pursue the most suitable and effective arrangements for their respective regulated profession.

It is important to note that the CTA is a UK wide commitment, therefore the UK government encourages that, where possible, all parts of the UK should coordinate to ensure there is an agreed, coherent approach while engaging Irish counterparts. This will ensure routes to recognition are available across the UK, to uphold the UK’s commitments as outlined in the 2019 CTA MoU. Although the priority is to ensure routes to recognition are being implemented quickly and effectively to meet the UK’s CTA commitments, regulatory bodies should coordinate and engage as a UK group where feasible, to ensure consistency in the approach.

The Department for Business and Trade is encouraging UK regulatory authorities to make contact with their Irish counterparts to ensure that bilateral arrangements are in place to allow for the continued recognition of professional qualifications to facilitate the CTA.

Where professions are regulated differently across the UK, the UK government is encouraging coordination between UK regulatory bodies to help ensure a coherent and consistent approach to upholding the CTA.

Other arrangements for mutual recognition

MRAs provide a formalised, potentially binding option for establishing processes between regulatory bodies to facilitate the recognition of professional qualifications, however it may not always be preferable for a regulatory body to enter into such an agreement depending on the circumstances. Other arrangements, or less formal types of MRAs could also be considered if a formal MRA of the type described above is not suitable. Less formal types of MRAs are sometimes referred to as Memoranda of Understanding (MoUs). We recommend that regulatory bodies should consider the most appropriate option for them and seek their own legal advice to establish what is appropriate or viable for them.

Regulatory bodies may wish to pursue more informal arrangements, such as an MoU, with international counterparts for several reasons:

• to increase flexibility in the form and drafting of the supporting documentation
• to increase the speed at which an agreement can be reached
• to document an informal arrangement which already exists between participating bodies
• to meet the level of appetite of either regulatory body to enter into a more formal arrangement
• to document agreements in relation to professional standards without establishing processes for recognition

Both MRAs and MoUs can record arrangements between participating bodies which relate to the recognition of professional qualifications. For example, a UK and EU regulatory body may record their intention to recognise professional qualifications from each party as equivalent in an MoU. Both an MRA and an MoU may include reference to scope, participating bodies and processes for recognising professional qualifications.

MoUs are a common method of documenting recognition arrangements and some UK regulatory bodies have MoUs in place with their international counterparts. Form and content of those MoUs varies significantly as there is flexibility in the form, content and structure. There are therefore flexibilities and innovations for ensuring professional qualifications are recognised in the manner desired by each party. Regulatory bodies’ approaches may range from agreeing to recognise the other party’s qualifications on the basis that they are equivalent, to agreeing the processes to assess the other party’s qualifications where regulatory alignment is less clear or simply an acknowledgement of the alignment of standards to be explored in future – it is ultimately for the participating bodies to decide.

It should be noted, however, that MoUs are typically written and formed in a way which expresses an intention based on goodwill and that is not binding in law. This may be beneficial for the reasons expressed above, as well as if an agreement is subject to regular changes, to scope, processes or administration. There is no required format or content for an MoU or an MRA, however it may be useful for regulatory bodies to consider the typical content of an MRA (either independent from an FTA or under a framework) as a point of reference when considering the arrangement. The Department for Business and Trade Recognition Arrangement team may be able to provide further helpful information and examples, contactable via: RecognitionArrangements@businessandtrade.gov.uk

It should also be noted that regulatory bodies may not wish to document arrangements in MoUs at all and that unilateral arrangements may be sufficient for the parties involved. This approach may be best suited to those regulatory bodies with well established, strong and trusting relationships with their international counterparts. Such an arrangement in principle may be beneficial to secure immediate business continuity before negotiating more formal arrangements in the future. Whether this approach is beneficial or not is ultimately a decision for the relevant regulatory bodies to take.

Domestic requirements for recognition

The UK currently has an interim system for the recognition of professional qualifications from the EEA and Switzerland which derives from EU law. This interim system was retained after the end of the Transition Period to provide certainty to businesses and to meet workforce demand. The interim system provides for the recognition of professional qualifications gained in the EU, Switzerland, Norway, Iceland and Liechtenstein. This system is supported by guidance for regulatory bodies, which regulatory bodies should refer to where applicable. No such arrangements are in place for regulatory bodies to consider how they could recognise qualifications gained in the rest of the world.

The UK government is proposing to revoke the EU-derived interim system and replace it with a new framework for the recognition of professional qualifications from all countries, for specified priority professions. Under this new framework, regulatory bodies will be able to continue ensuring that the high standards for their profession and part of the UK are met. Further detail can be found in the Recognition of Professional Qualifications and Regulation of Professions Policy Statement.

Support for regulatory bodies

The recognition of professional qualifications is deemed an important element of a modern FTA, such as the TCA. Agreeing future FTAs with international trade partners is a priority for the UK government. The UK government is committed to supporting stakeholders to utilise FTA provisions in full, to encourage frictionless trade where possible both inside and outside of existing trade agreements. As coordinating department for regulated professions policy in the UK, the Department for Business and Trade has set up a function to support regulatory bodies in entering into arrangements to facilitate the recognition of professional qualifications.

Through this function the Department for Business and Trade will provide guidance, expertise and non-legal advice on the options available to regulatory bodies pursuing recognition arrangements. Some regulatory bodies may be eligible for financial assistance, The Department for Business and Trade will publish further information on this in due course. Elements of the service provided by the Department for Business and Trade will be initially focused on those sectors which are most aligned to the UK government’s strategic objectives on regulated professions policy and global services trade. As outlined in earlier, the Department for Business and Trade will have a more central role in supporting regulatory bodies through the process of initiating, negotiating and implementing MRAs under the TCA.

The Department for Business and Trade has established a Recognition Arrangements Team to support regulatory bodies considering recognition arrangements with their international counterparts. For further information, they can be contacted via: RecognitionArrangements@businessandtrade.gov.uk

Annex 1: Additional guidance on structure

Please note that this text provides guidance on what an MRA may typically include, separated into possible sections. What will be appropriate for a regulatory body will depend on that body’s individual needs and regulatory bodies should seek independent legal advice.

Participating Bodies
This section may be used to set out the parties to the agreement.

Participating bodies may include full titles with any information regarding establishment or legislative basis, status and area of competence of each party and note relevant information regarding devolution. There is no limit to the number of participating bodies which may be involved.

Definitions
This section may include definitions for specific terminology used in reference to processes, qualifications and effected parties.

The agreement may also state that the content does not supersede regulatory or legislative requirements in any of the jurisdictions involved.

Purpose and scope
In this section, it may be helpful to set out the general purpose of the agreement, for example that the agreement provides for a process by which the professionals concerned can apply for recognition in the other jurisdiction, or that the agreement is intended to streamline the admissions pathway in the other jurisdiction for the professionals concerned.

The agreement could include aims and objectives, for example:

• to minimise duplication of assessment processes
• to recognise jurisdictional differences and organisational autonomy
• to maintain confidence in the quality of Professional Registration decisions in both jurisdictions
• to avoid restrictions on the cross-border provision of a service

The agreement should make clear who it covers, for example professionals who have been admitted to certain professional registrations by identifying the professional titles used or held in the relevant jurisdictions.

It may be useful to state that laws in force in each jurisdiction regulate the practice of the profession and that professionals registered in a jurisdiction are compelled to follow the laws and codes in force in each jurisdiction in which they have been authorised to practise.

It may be useful to state that the agreement covers recognition of a professional qualification only and does not cover additional visa/residency requirements proposed by either participating jurisdiction.

Differences in professional qualifications might be specified at this stage of the document to ensure clarity (for example memberships/titles).

Provisions for mutual recognition
In this section, it may be useful to outline the arrangements for recognition. It may outline that the agreement means that the professionals concerned from the overseas jurisdiction and from across the UK, who meet the certain requirements may be recognised in each other’s jurisdictions.

If useful, separate annexes could be used to provide more detail on processes and criteria.

- Basis for recognition
It may be useful to outline what the relevant professionals who are eligible for recognition under the agreement must do to acquire recognition, for example:

• meet specific educational requirements
• be a registered member of a relevant regulatory body
• comply with certain registration/licensing requirements

It might then be useful to outline any application requirements, standard or otherwise in each jurisdiction, for example:

• a completed standardised application form
• evidence of types of examination
• evidence of specific knowledge
• evidence of practical experience
• academic transcripts

- Type of access
It may be useful, if relevant, to outline that the agreement covers certain types of access to the profession, such as permanent establishment, partial access or temporary and occasional access.

- Compensation measures
It may then be useful to outline if any types of aptitude test are required for any of the relevant professionals under the agreement.

It may be useful for the agreement to outline the reasons for including an aptitude test, for example to resolve distinct differences between regulatory standards between the participating bodies and that it may accompany the standard application requirements outlined in the agreement.

Dispute resolution management
It may be useful to include a general statement about attempting to resolve disagreements, for example, through co-operation and consultation.

It may be useful to include requirements for the participating bodies to make each other aware of any actual or proposed measure, or any other matter that may be considered to affect the operation or interpretation of the agreement.

Discipline, enforcement and appeals
It may be useful to cover disciplinary and enforcement issues in the agreement.

This could include that an application for recognition made under the agreement may require an applicant to declare any sanctions related to the practice of their profession in other jurisdictions and consequences of not declaring sanctions. It may also be useful for information regarding sanctions to be considered in the assessment process.

It may then be useful to outline how each participating body will take appropriate action in accordance with their rules and regulations if a professional violates the terms of the agreement. Outlining the reporting requirements expected of each participating body and the method for doing so may also be useful.

It may be useful to outline that a participating body may take action, subject to its own rules and regulations, related to a sanction that is reported to them by another participating body.

It may also be useful to outline procedures for individuals to appeal against decisions made by participating bodies, including in relation to recognition and sanctions.

Terms of the agreement and termination
The agreement will need to make clear how a party can withdraw, for example by giving written notice of withdrawal to the other parties. In a multilateral agreement, it may be useful to set out the consequences of withdrawal for the remaining participating authorities. It would be useful to consider whether withdrawal or termination will have on any professional approved or in the process of being assessed at the time of the agreement being terminated.

Information sharing and GDPR
The agreement could stipulate that the participating authorities will cooperate on the sharing and transfer of information to facilitate the terms of the agreement.

It may be useful to state that information sharing and handling of data must be in line with the most recent legislation on data protection in the jurisdictions where the participating authorities are based.

Revision of the agreement
Any measure to do with revisions will go here, this may include: standard procedure for revision, sunset clauses, repeal and replacement of agreement. A fixed review period may be beneficial to ensure that the agreement is regularly revisited and does not lapse into disuse by nominally remaining in force while being out of date in practise.

Annex 2: Glossary of terms

Term	Definition
Bilateral agreement	An agreement between two participating bodies.
Chartered professional body	A professional organisation or institution to which independent legal personality has been conferred through a grant of Royal Charter. The terms of each Charter differ for each organisation.
Common Travel Area (CTA)	The Common Travel Area (CTA) is a long-standing arrangement between the UK, the Crown Dependencies (Bailiwick of Jersey, Bailiwick of Guernsey and the Isle of Man) and Ireland that pre-dates both British and Irish membership of the EU and is not dependent on it. Under the CTA, British and Irish citizens can move freely and reside in either jurisdiction and enjoy associated rights and privileges, including the right to work, study and vote in certain elections, as well as to access social welfare benefits and health services.
Multilateral agreement	An agreement between three or more participating bodies.
Mutual Recognition Agreement (MRA)	A formal agreement between two or more parties in respect of recognising professional qualifications of the other party or parties involved. An MRA may be a legally binding document, depending on the language included.
Partnership Council	A governance structure put in place under the TCA, which sits alongside a set of committees to oversee its operation. The TCA provides that these committees must meet at least once a year.
Recognition Arrangements	An umbrella term referring to different types of bilateral or multilateral arrangements in place to facilitate the recognition of professional qualifications, including MRAs, and MoUs.
Regulatory bodies	An umbrella term referring to Professional, Statutory and Regulatory Bodies (PSRBs) that regulate specific professions (see ‘regulated profession’). In the context of this guidance, this includes bodies that control access to professions that are regulated in law, as well as chartered professional bodies which may self-regulate without underpinning legislation.
Regulated profession	An umbrella term referring to professions where the ability to practice the profession is limited to those holding specific qualifications or experience, or if they can meet certain alternative conditions. In the context of this guidance this includes chartered professions that are not regulated in law.
Trade and Cooperation Agreement (TCA)	A free trade agreement between the UK and EU, setting the framework for the UK’s trade partnership with the EU following the UK’s withdrawal from the EU and the transition period.