FCA Inks Fintech Agreement with Hong Kong’s SFC to Foster Financial Innovation

The UK’s Financial Conduct Authority (FCA) has signed a co-operation agreement with the Securities and Futures Commission (SFC) in Hong Kong to foster collaboration between the two regulatory authorities towards the promotion of financial innovation.

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Under the agreement, the FCA and SFC, which oversees Hong Kong’s banking, securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term industries, will work together 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.

In addition, the co-operation framework will enable the regulators to share information about financial services innovations, reduce barriers to entry in a new jurisdiction and further encourage innovation in both countries.

The latest agreement follows several other collaborations that the FCA has instigated with international authorities including Singapore, South Korea, China and Australia, and is part of its statutory objective to make financial services markets work well. Promoting competition through innovation forms a significant part of the regulator’s mission, it said.

Christopher Woolard, Executive Director of Strategy and Competition at the FCA, commented: “Co-operation agreements are absolutely vital in fostering an environment of Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term 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.”

Mr Ashley Alder, the SFC’s Chief Executive Officer, added: “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.”