The Hong Kong Monetary Authority (HKMA) and the UK Financial Conduct Authority (FCA) have announced collaboration by entering into a Co-operation Agreement in order to foster fintech innovation between the two regulatory authorities.
The agreement was signed at the London-Hong Kong Financial Services Forum that was held recently in London. With the agreement, both the bodies will closely work on a number of initiatives including referrals of fintech firms, joint innovation projects, information exchange and experience sharing, among others, to facilitate financial and technology innovation in Hong Kong and the United Kingdom, the release stated.
“We are delighted to sign the Agreement with 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,” Shu-Pui Li, Executive Director (Financial Infrastructure) of the HKMA, said.
The agreement is a key initiative of the Fintech Facilitation Office (FFO) of the HKMA that represents significant opportunities for fintech firms to develop their services and extend their global footprint. The union shows HKMA’s commitment to build a vibrant fintech ecosystem.
“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,” Li added.
The agreement indicates fifth co-operation for UK’s FCA, after signing with Australia, Singapore, South Korea, and China. Partnering with HKMA will 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.
“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,” Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said.
