UK FCA, Hong Kong SFC enter fintech agreement to foster innovation

The UK’s Financial Conduct Authority (FCA) announced that it has entered into a co-operation agreement with the Hong Kong’s Securities and Futures Commission (SFC) in a move to foster fintech collaboration in both the countries.

With the agreement, FCA and SFC will work together on sharing information as well as referrals of innovative fintech firms that are seeking to enter each other’s market, the official release said.

“Co-operation agreements are absolutely vital in fostering an environment of Fintech innovation on a global scale. In the last few months alone we’ve signed agreements with colleagues in China, Japan, Canada and the Hong Kong Monetary Authority. Working with other regulators internationally, we want to build a common understanding of the principles of good innovation and we look forward to working closely with the SFC,” Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said.

By the end of last year, FCA signed a similar agreement with the Hong Kong Monetary Authority. The recent move does not only indicate that FCA has agreements with a number of key regulators in Hong Kong, but also it will be important given the breadth and speed in development of the Fintech sector.

The FCA – SFC agreement comes after the creation of the FCA’s Innovation Hub in 2014 and the SFC’s Fintech Contact Point in 2016.

“This agreement will help both regulators stay abreast of innovation in financial services while providing innovative Fintech firms seeking to develop and grow their businesses internationally with enhanced channels for communicating with regulators,” Ashley Alder, the SFC’s Chief Executive Officer stated.