The UK and Singapore have reaffirmed their dedication to fostering financing solutions that are aligned with sustainable finance. Key discussions in a recent meeting between the two nations revolved around the necessity of robust transition planning, standardized disclosure frameworks, and the mobilization of private capital for green finance initiatives.
During the 9th UK-Singapore Financial Dialogue held on May 8, both countries acknowledged the ongoing efforts of international bodies like the G20 and FSB in shaping the regulatory landscape for sustainable finance, emphasizing the importance of global cooperation. The dialogue revolved around sustainable finance, fintech, and the evolving landscape of non-bank financial intermediation (NBFI).
Embracing Fintech
Parallel to discussions on sustainable finance, the dialogue culminated in an exchange of ideas regarding the evolving sector of fintech and innovation. From artificial intelligence to crypto assets and central bank digital currencies (CBDC), the dialogue analyzed the technological advancements reshaping the financial sector, the Monetary Authority of Singapore highlighted.
The UK and Singapore pledged to adhere to international standards and foster collaborative efforts through platforms like IOSCO and FSB to mitigate risks while nurturing innovation. Amidst the evolving landscape of NBFI, both nations recognized the importance of enhancing regulatory frameworks to effectively address emerging risks.
Discussions centered on bolstering authorities' capabilities in monitoring NBFI risks through improved data sharing and policy implementation. Additionally, the dialogue underscored the shared commitment towards enhancing cross-border payment connectivity , with initiatives like Project Nexus aiming to strengthen global payment systems.
Regulations in the UK
Last year, the UK unveiled a two-year plan to enhance its open banking ecosystem. With over seven million Britons already embracing open banking products, regulatory authorities aim to foster even greater competition and innovation in this rapidly evolving sector.
Established in March 2022, the Joint Regulatory Oversight Committee, co-led by the Financial Conduct Authority and the Payment Systems Regulator, has set a roadmap to guide the next phase of open banking development in the UK.
With a focus on scalability, security, and sustainability, the plan aims to elevate the availability and performance of open banking services while addressing risks associated with financial crime. Moreover, it emphasizes the importance of robust consumer protection measures and improving information flows to third-party providers and end-users.
