Under the agreement, the FCA and the HKMA will come together to facilitate innovative financial growth.
The UK regulator and Hong Kong's financial watchdog have joined forces to stimulate financial innovation by reducing barriers for authorised firms looking to grow overseas and assisting innovators in entering the UK market.
Under the agreement, the Financial Conduct Authority and the Hong Kong Monetary Authority will collaborate on a number of regulatory initiatives, such as referrals of innovative firms, joint innovation projects and information exchange, to encourage forward-thinking financial growth in both nations.
For the UK regulator, this arrangement represents the fifth collaborative effort it has entered into; it has already established various agreements with Australia, Singapore, South Korea and China. For Hong Kong, it is an initiative of the regulator's Fintech Facilitation Office, which seeks to help companies expand their global footprint while building a fintech ecosystem, the FCA said in a statement.
“The agreement signed today with the HKMA is a good example of this type of international co-operation and we look forward to working to promote innovation and reduce barriers to entry for firms both here in the UK and in Hong Kong,” said Christopher Woolard, executive director of strategy and competition at the FCA.
Shu-Pui Li, executive director of financial infrastructure at the HKMA, said: “Collaboration between the HKMA and the FCA will create significant synergy for the two markets by enabling fintech firms and financial institutions to extend their global reach and learn from their foreign counterparts. It will also help to enhance services delivered by financial institutions.”