The Japan Financial Services Agency (JFSA) and the UK’s Financial Conduct Authority (FCA) have exchanged letters on the creation of a cooperation framework to support fintech firms’ innovation efforts.
The exchange of letters between the two countries’ regulators will provide a referral system for tech-oriented businesses seeking to enter each other’s markets. This system will help reduce regulatory uncertainty and time to market. Additionally, this will allow easier exchange of information between the two sectors, reduce barriers to entry, and encourage innovation.
With this agreement, fintech firms in the UK that seek to do business in Japan can access vital knowledge from the foreign market. It can also help innovators from outside the UK to gain the approval of the FCA.
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."