Less than a week after Japan inked an agreement to partner with the Financial Conduct Authority in the UK, the Financial Services Agency (FSA) in Japan has announced a cooperation framework with the Monetary Authority of Singapore (MAS).
Similar to other existing arrangements by MAS, the Framework enables MAS and the FSA to refer Fintech companies in their countries to each other’s markets. The agreement also outlines how the referred companies can initiate discussions with the regulatory bodies in the respective jurisdictions and receive advice on their regulatory frameworks, such as required licences etc. The arrangement is designed to reduce regulatory uncertainty and barriers to market entry. Additionally, the Framework also sets out how the regulators plan to share and use information on financial services innovation in their respective markets.
“Technology and innovation remain key enablers of financial sector growth in Singapore and Japan. The setting up of the framework is a great opportunity for the FinTech ecosystems in Singapore and Japan, and enhances the already strong financial and economic cooperation between the two countries.” commented Sopnendu Mohanty, Chief Fintech Officer at MAS.
Shunsuke Shirakawa, the Vice Commissioner for International Affairs at the FSA, added;
“We are delighted to establish this Co-operation Framework with MAS, which is actively promoting FinTech based on its Smart Financial Centre Vision. We believe that this Framework strengthens the relationship between FSA and MAS and promotes innovation in our respective markets.”
The Singapore government has publicly recognized the strategic importance of embracing Fintech innovation. Singapore has positioned itself not only as a regional Fintech Hub but also as a challenger to the UK’s title of the leader in Fintech advancement and entrepreneurship.