Strategy
UK, Japan Financial Watchdogs Look To Accelerate Fintech Growth
A pair of regulators from opposite sides of the globe say they will collaborate to assist innovative financial services firms that wish to enter the other's market.
The UK's financial watchdog and a Japanese counterpart have
shaken hands on an agreement that seeks to foster the development
of financial technology firms.
The Financial
Conduct Authority and the Financial
Services Agency of Japan of Japan this week exchanged letters
on a cooperation framework that aims to support fintech companies
by establishing a “regulatory referral” system. This will allow
innovative firms to draw on the advice and expertise of the
relevant regulator, should they wish to enter the other's
market.
In turn, this will reduce regulatory uncertainty and the
time-to-market period, the FCA says.
“We are committed to encouraging innovation that has the
potential to be of benefit to consumers using financial services
here in the UK,” said Christopher Woolard, executive director of
strategy and competition at the FCA. “Today’s exchange of letters
with the JFSA will help break down barriers to entry both in
Japan and in the UK for firms with interesting new business
services and products."
Shunsuke Shirakawa, vice commissioner for international affairs
at the JFSA, said: “This is our first case in creating a
pro-fintech cooperation framework with any other countries. The
UK is one of the world-leading fintech countries, generating £6.6
billion ($8 billion) in revenue. We believe that this exchange of
letters strengthens the relationship between the JFSA and the FCA
and promotes innovation in our respective markets.”
The collaboration comes as a plethora of financial regulators
across the world enter into similar cross-border arrangements
that seek to bolster the fintech sector in certain
markets.
Earlier this week,
the Monetary Authority of Singapore and Abu Dhabi Global Market
signed a cooperation agreement to facilitate closer
collaboration between the two bodies on initiatives relating to
fintech and innovation in financial services.