The Financial Services Agency of Japan (JFSA) and the UK’s Financial Conduct Authority (FCA) have exchanged letters on a co-operation framework to support innovative FinTech companies from both countries.

The letters will provide a regulatory referral system for businesses from each country seeking to enter the other’s market. The authority that receives a referral will provide support to the businesses through reducing regulatory uncertainty and time to market.

Furthermore, the agreement will encourage the regulators to share information about financial services innovation in their respective markets, reduce barriers to entry in a new jurisdiction and further encourage innovation in both countries.

Christopher Woolard, executive director of strategy and competition at the FCA, said: “We are committed to encouraging innovation that has the potential to be of benefit to consumers using financial services here in the UK. Today’s exchange of letters with the JFSA will help break down barriers to entry both in Japan and in the UK for firms with interesting new business services and products.”

Shunsuke Shirakawa, vice commissioner for international affairs at the JFSA, added: “We are delighted to establish this co-operation framework with the FCA. This is our first case in creating a pro-FinTech co-operation framework with any other countries. The UK is one of the world-leading FinTech countries, generating £6.6 billion in revenue. We believe that this exchange of letters strengthens the relationship between the JFSA and the FCA and promotes innovation in our respective markets.”

Share Story: