It will create a forum where the EU and the UK may meet twice annually to talk about financial standards and regulation.
The long-awaited move is seen as an indication that the UK is prepared to work closely with the EU.
The UK and EU financial markets are “deeply interconnected,” according to the chancellor, therefore fostering positive relations is in everyone’s best interests.
After the UK lost unrestricted access to EU markets as a result of Brexit, the memorandum was initially described in the UK-EU Trade and Cooperation Agreement.
The text, which was released last month, is essentially a list of broad common goals.