The U.K.’s Financial Conduct Authority (FCA) has signed a deal with Japanese regulators to help fintechs in the two countries break intoeach other’s markets. This move follows a similar deal the FCA made recently with the Ontario Securities Commission (OSC).
The FCA and the Financial Services Agency of Japan (JFSA) announced that they have reached an agreement to support innovative fintech companies by providing a regulatory referral system that will enable U.K. companies to enter the Japanese market more easily, and vice versa. The regulators also agreed to share information about financial innovation in their respective markets and to reduce barriers to entry.
The FCA reached a similar arrangement last month with the OSC, demonstrating the increasing commitment among regulators to support innovation in the financial services sector.
“This is our first case in creating a pro-fintech co-operation framework with any other countries,” notes Shunsuke Shirakawa, vice commissioner for international affairs at the JFSA, in a statement.
Christopher Woolard, executive director of strategy and competition at the FCA, adds in a statement: “Today’s exchange of letters with the JFSA will help break down barriers to entry both in Japan and in the U.K. for firms with interesting new business services and products.”