FCA and FSA of Japan to form fintech ‘co-operation framework’

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The FCA has exchanged letters with the Financial Services Agency of Japan on a “co-operation framework” to support innovative fintech companies.

The set-up will provide a regulatory referral system for innovator businesses from Japan and the UK seeking to enter each other’s markets.

The exchange of letters will encourage the regulators to share information about financial services in their respective markets, clarify any regulatory uncertainty and reduce time to market.

The FCA says the exchange of letters will provide “invaluable” knowledge to UK firms hoping to enter the Japanese market and vice versa.

It hopes to encourage Japanese startups to engage with financial services companies globally, attract UK companies to the UK market and help stimulate both economies.

FCA executive director of strategy and competition Christopher Woolard says: “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.”

JFSA vice commissioner for international affairs Shunsuke Shirakawa adds: “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. UK is one of the world-leading fintech countries, generating £6.6bn 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.”