UK and Hong Kong regulators agree fintech co-operation
- Suzie Neuwirth
- On May 12, 2017
THE FINANCIAL Conduct Authority (FCA) has entered into a co-operation agreement with the Securities and Futures Commission (SFC) in Hong Kong to boost collaboration on fintech innovation.
Under the agreement, the two regulators will share information and refer innovative businesses to each other that would like to operate in the other jurisdiction.
The FCA works with fintech companies through its Project Innovate initiative to encourage better services for consumers, while the SFC established the Fintech Contact Point to foster the development of fintech and regtech.
“Co-operation agreements are absolutely vital in fostering an environment of fintech innovation on a global scale,” said Christopher Woolard, executive director of strategy and competition at the FCA.
“In the last few months alone we’ve signed agreements with colleagues in China, Japan, Canada and the Hong Kong Monetary Authority. Working with other regulators internationally, we want to build a common understanding of the principles of good innovation and we look forward to working closely with the SFC.”
Having signed a similar agreement with the Hong Kong Monetary Authority in December 2016, Friday’s announcement means that the FCA now has agreements with a number of key regulators in Hong Kong.
“This agreement will help both regulators stay abreast of innovation in financial services while providing innovative fintech firms seeking to develop and grow their businesses internationally with enhanced channels for communicating with regulators,” said Ashley Alder, chief executive of the SFC.
The UK has established a number of fintech partnerships with Asian countries in the wake of the Brexit vote. Last November, it announced that it had created a fintech ‘bridge’ with China and in March, it signed an agreement with the Financial Services Agency of Japan to promote cooperation in the sector.