The UK’s Financial Conduct Authority and the Hong Kong Monetary Authority have entered into a co-operation agreement to foster collaboration between the two regulatory authorities in promoting financial innovation.
According to the agreement, which was signed yesterday at the London-Hong Kong Financial Services Forum in London, the FCA and the HKMA 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 UK and Hong Kong.
For the UK this represents the fifth co-operation agreement that the FCA has signed with international authorities after Australia, Singapore, South Korea, and China. The FCA said that it hopes that the Co-operation Agreement with the HKMA will “reduce the barriers for authorised firms looking to grow to scale overseas” and assist non-UK innovators interested in entering the market the FCA oversees.
The agreement has fintech at its heart and is being spearheaded by its Fintech Facilitation Office (FFO) of the HKMA.
Christopher Woolard, executive director of strategy and competition at the FCA, said: “Alongside promoting innovation in UK businesses, we also want 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, said: “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.”