Policy paper

Memorandum of Understanding on the United Kingdom-Singapore FinTech Bridge

Published 25 November 2022

The Government of the United Kingdom of Great Britain and Northern Ireland (“UK”) and the Monetary Authority of Singapore (“MAS”), (hereinafter collectively referred to as “the Participants”),

Recognising their position as world-leaders of FinTech development, supported by a regulatory approach to FinTech that is seen globally as the model to emulate – striking the right balance between efficiency and stability, ensuring that innovation is not stifled, while maintaining trust in the financial system;

Welcoming the existing cooperation for FinTech and innovative financial services between the Participants’ respective jurisdictions;

Recognising the significant growth opportunity offered by FinTech for both the United Kingdom’s and Singapore’s economies through its potential to improve outcomes for consumers, increase access to finance and financial inclusion, and enhance innovation in financial services;

Noting that closer collaboration between the Participants, financial regulators and businesses will enable informed and proactive policy actions, to address emerging issues and support the enhancement of trade and investment flows between our respective markets;

Have come to the following understandings:

Section 1

Purpose

1.1 This UK-Singapore FinTech Bridge Memorandum of Understanding (“FinTech Bridge MoU”) builds on:

• the Co-operation Agreement between Financial Conduct Authority and Monetary Authority of Singapore signed on 11 May 2016 (the “2016 Co-operation Agreement”);
• the Memorandum of Understanding between Her Majesty’s Treasury and the Monetary Authority of Singapore on Financial Services Regulatory Cooperation signed on 30 June 2021 (“the 2021 MoU”);
• the Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and the Republic of Singapore signed at Singapore on 10 December 2020 (“the 2020 FTA”); and
• the Digital Economy Agreement between the United Kingdom of Great Britain and Northern Ireland and the Republic of Singapore signed on 25 February 2022.

1.2 The Participants intend to provide the fullest possible mutual assistance to one another within the provisions of this FinTech Bridge MoU. This FinTech Bridge MoU operates subject to the domestic laws and regulations of Singapore and the UK. This FinTech Bridge MoU sets forth a statement of intent and accordingly does not create any enforceable rights, and is not legally binding.

1.3 This 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 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.

Section 2

Policy-to-Policy

2.1 The UK designates Her Majesty’s Treasury as its authority responsible for its commitments under this Section.

2.2 The Participants commit to ongoing working level discussions held at least quarterly, attended by relevant officials, to discuss FinTech developments in their respective jurisdictions. The Participants will report their progress into the annual UK-Singapore Financial Dialogue referred to in paragraph 6 of the 2021 MoU. Their report may include the notification of relevant FinTech-related announcements.

2.3 Exploring perceived challenges faced by UK and Singapore FinTech firms looking to access and scale up in each other’s markets will form a key part of these discussions, using data where available.

2.4 The Participants will explore with relevant industry bodies innovative avenues for incorporating the views and experiences of FinTech firms.

2.5 Upon agreement of both Participants, other relevant agencies and stakeholders from each of the Participants’ jurisdictions may be invited to participate in discussions where their participation would add value.

2.6 Dialogue between the Participants and relevant regulators from the UK and the financial services and/or FinTech industry will help to identify emerging FinTech trends and policy issues including digital and mobile payments, blockchain and distributed ledgers, data sharing and open data flexible platforms and other areas of new technologies in the financial services industry – in a timely manner, and enable collaboration on policy responses.

2.7 The Participants will consider participating in joint innovation projects on the application of key technologies including digital and mobile payments, blockchain and distributed ledgers, data sharing and open data flexible platforms and other areas of new technologies in the financial services industry.

2.8 Where opportune, the Participants note the importance of the global standards setting bodies and international fora and will cooperate on FinTech and broader financial regulatory policy issues where they are covered in these fora.

2.9 The Participants will consult each other, as appropriate, with regard to the activities contained in paragraphs 1 and 2 of the Joint Declaration on Financial Services in the 2020 FTA.

Section 3

Regulator-to-Regulator

3.1 The FinTech Bridge MoU does not affect any commitment or understanding under any of the arrangements referred to in the 2016 Co-Operation Agreement.

Section 4

Business-to-Business

Promotion of Bridge

4.1 The UK designates the Department for International Trade (“DIT”) as its authority responsible for its commitments under this Section.

4.2 The Participants will work to raise the profile of the FinTech Bridge, as well as its benefits to UK FinTech and Singapore FinTech firms.

4.3 The Participants confirm the primary objective of the Business-to-Business pillar is to increase the ease of UK FinTech firms doing business in Singapore and Singapore FinTech firms doing business in the UK. The Participants also intend the provisions in the Business-to-Business pillar to provide an expected level of cooperation and not to be prescriptive or exhaustive of all support that they may endeavour to make available to UK and Singapore FinTech firms through the FinTech Bridge.

4.4 The Participants will provide opportunities for FinTech firms to utilise the Fintech Bridge, including through promotion of the FinTech Bridge at high-profile FinTech events in Singapore and the UK, such as Singapore FinTech Festival and UK FinTech Week.

4.5 The Participants will endeavour to ensure references to the FinTech Bridge are included within key briefings and engagements of relevant officials of the Participants.

Industry Bodies

4.6 The Participants will support active engagement between FinTech industry bodies in the UK and Singapore, such as Innovate Finance (UK) and Singapore FinTech Association (“FinTech Industry Bodies”) as they curate and lead regular business to business summit discussions.

4.7 The Participants welcome these summit discussions referred to in section 4.6 as an opportunity for the FinTech Industry Bodies to make recommendations ahead of talks between the Participants referred to in section 2.2, and discuss challenges to entering each other’s market and other FinTech policy issues.

Trade and Investment

4.8 The Participants commit to the promotion of potential opportunities in Singapore to UK FinTech firms, and potential opportunities in the UK to Singapore FinTech firms.

4.9 In order to represent the Business-to-Business pillar of the FinTech Bridge, the Participants will have at least one representative from DIT and MAS present at meetings agreed under the Policy-to-Policy pillar in section 2.2.

4.10 The Participants commit to ensure any material challenges encountered by firms involved in the FinTech Bridge activities are captured and referred to the authorities responsible for the Policy-to-Policy pillar.

4.11 The Participants will ensure there are defined processes established by each Participant on how UK FinTech firms can access UK support to access opportunities in Singapore, and how Singapore FinTech firms can access MAS support to access opportunities in the UK.

Support to firms

4.12 To encourage UK FinTech firms and Singapore FinTech firms to explore opportunities in both jurisdictions, the Participants will use their existing business support programmes to assist FinTech firms in taking advantage of opportunities in both markets.

4.13 The Participants will endeavour to showcase nominated FinTech firms during UK FinTech Week (or an equivalent event) and the Singapore FinTech Festival (or an equivalent event) to potential investors, buyers or suppliers nominated by the Participants.

Section 5

Amendment

This FinTech Bridge MoU will be reviewed regularly to ensure its maximum impact and efficiency in a fast-paced industry. The Participants may decide to amend its provisions at any time by mutual written consent.

Section 6

Termination

This FinTech Bridge MoU may be terminated by either Participant by giving the other Participant at least six months’ notice in writing (“the Notice Period”).

The Participants may agree, during the Notice Period, to continue to implement any activities under this MoU prior to the termination.

If this FinTech Bridge MoU is terminated, both participants will agree to jointly review any pre-existing activities established under this MoU and agree in writing those which may continue until their natural conclusion and those which should be terminated before their natural conclusion.

Section 7

Signature

This FinTech Bridge MoU comes into effect on the date of its signature and will continue to have effect unless terminated under Section 6.

The foregoing record represents the understandings reached between the Government of the United Kingdom of Great Britain and Northern Ireland and the Monetary Authority of Singapore upon the matters referred to therein.

Signed in duplicate on with each Participant holding one copy.

Both copies will have the same effect.

For the Government of the United Kingdom of Great Britain and Northern Ireland:

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Gwyneth Nurse

Director General for Financial Services at HM Treasury

For the Monetary Authority of Singapore:

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Leong Sing Chiong

Deputy Managing Director, Monetary Authority of Singapore