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FCA signs fintech deal with second Hong Kong regulator

The Financial Conduct Authority (FCA) has finalised an agreement with a second Hong Kong regulator which will see the authorities cooperate on matters of financial technology (fintech).15 May 2017

The FCA's new agreement with the Securities and Futures Commission (SFC) in Hong Kong (7-page / 215KB PDF) follows on from a similar deal it struck with the Hong Kong Monetary Authority (HKMA) late last year.

The agreement will see the FCA and SFC refer 'innovator businesses' in their jurisdiction to one another for assistance in becoming authorised to operate in the others' local market. It also provides for information sharing between the regulators on "emerging trends and developments; regulatory issues pertaining to innovation in financial services; and information on organisations or bodies which lead efforts to promote innovation in financial services".

According to the agreement, the FCA and SFC could also in future work together on "joint innovation projects on the application of novel financial technologies".

The FCA has put in place a number of similar fintech cooperation agreements with regulators based around the world in recent months. Earlier this year, the FCA agreed cooperation agreements with the Financial Services Agency of Japan (JFSA) and the Ontario Securities Commission (OSC) in Canada, and it also has such agreements in place with regulators in AustraliaSingaporeSouth Korea, and China.

Christopher Woolard, executive director of strategy and competition at the FCA, said: "Cooperation agreements are absolutely vital in fostering an environment of fintech innovation on a global scale. 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."

Ashley Alder, chief executive of the SFC, said: "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."

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