The UK Financial Conduct Authority (FCA) has signed a new collaboration agreement. This time the FCA has formed a co-operation agreement with the Hong Kong Monetary Authority (HKMA). The arrangement is for the two securities regulators to collaborate on promoting financial innovation and is similar to agreements the FCA has formed with other countries.
The FCA explains that the two entities will closely collaborate on a number of initiatives such as referrals of innovative firms, joint innovation projects, information exchange and experience sharing, to facilitate financial innovation in the United Kingdom and Hong Kong.
The Agreement is a key initiative of the Fintech Facilitation Office (FFO) of the HKMA. The Agreement also shows the HKMA’s commitment to building a vibrant Fintech ecosystem.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, explained they wanted to see the best firms from around the world coming to the UK.
“Both consumers and the wider UK economy benefit from this transfer of ideas and innovation. 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.”
Shu-Pui Li, Executive Director (Financial Infrastructure) of the HKMA, commented on the agreement;
“We are delighted to sign the Agreement with the FCA. Both Hong Kong and the UK are well positioned as global financial centres and premier locations for financial innovation. Many fintech firms and financial institutions in the two markets have already gained a solid local footing. 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.”
This represents the 5th co-operation agreement that the FCA has signed with international authorities after Australia, Singapore, South Korea, and China.
The FCA has a statutory objective as a regulator to make financial services markets work well while promoting competition through innovation forms a significant part of this. This agreement should reduce the barriers for authorized firms looking to grow to scale overseas and assist non-UK innovators interested in entering the market the FCA oversees.