The MoU intends to be a regulatory approach to FinTech that is seen globally as the model to emulate, by striking the right balance between efficiency and stability, ensuring that innovation is not stifled, while maintaining trust in the financial system.
Furthermore, it indents to support the existing cooperation for FinTech and innovative financial services between the Participants’ respective jurisdictions.
The memorandum has been created as a perceived growth opportunity offered by FinTech for both the United Kingdom’s and Singapore’s economies. It has the potential to improve outcomes for consumers, increase access to finance and financial inclusion, and enhance innovation in financial services.
The parties believe that collaboration between the two parties, financial regulators, and businesses will allow for informed and proactive policy actions, to address emerging issues and support the enhancement of trade and investment flows between their respective markets.
The Participants intend to provide the fullest possible mutual assistance to one another within the provisions of this FinTech Bridge MoU. This MoU operates subject to the domestic laws and regulations of Singapore and the UK. It sets forth a statement of intent and accordingly does not create any enforceable rights and is not legally binding.
The MoU will deliver a strengthened framework for regulatory and policy discussions between the two countries, enable innovation across financial services, and ensure businesses based in both the UK and Singapore have the ongoing support for their ambitions for growth to be realised.
During their talks, the two countries shared their latest assessments of market developments, opportunities, trends, and longer-term expectations for the crypto-assets sector. They discussed risks and challenges relating to financial stability, regulatory arbitrage, and shared their progress in strengthening rules on consumer protection and developing the regulation of stablecoins.
They agreed on the need to support the safe development of a digital assets ecosystem while ensuring that risks posed by digital assets are consistently managed. Both countries will continue to actively participate in the shaping of robust global regulatory practices through engagement within international multilateral fora such as the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI) and IOSCO.
The two countries agreed to a roadmap for engagements in sustainable finance, fintech and innovation, and other areas of mutual interest. Both countries agreed on the usefulness of ongoing exchange of information on this topic, including on financial sanctions.
The FinTech Bridge MoU will:
enable close and stronger collaboration between the participants and the industry through the establishment of a new structured engagement;
provide a formalised framework for on-going cooperation between the two participants on fintech issues, covering policy to policy and business to business (including trade and investment) engagement;
recognise the on-going regulator to regulator engagement on fintech issues between the FCA and MAS pursuant to the 2016 Cooperation Agreement;
highlight the facilities and assistance available to fintech firms in each jurisdiction to explore new business opportunities;
provide opportunities to discuss ways to improve available support and reduce barriers to entry in both jurisdictions; and
facilitate future discussions covering the joint promotion of the FinTech Bridge and further innovation in financial services.
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