The UK and Singapore are deepening cooperation within FinTech and strengthening economic cooperation

Singapore, 25 November 2022… The United Kingdom (UK) and Singapore held the 7th UK-Singapore Financial Dialogue in Singapore today. Both countries renewed their commitment to deepening the UK-Singapore Financial Partnership agreed in 2021, discussed mutual priorities such as sustainable finance, FinTech and innovation, and agreed further cooperation in these areas.

During the financial dialogue, the UK and Singapore agreed on a Memorandum of Understanding on the FinTech bridge between the UK and Singapore[1]. FinTech Bridge seeks to support continued growth, investment and technological innovation in this sector, and builds on active interest from FinTech players in the areas of payments, RegTech and wealth management. Both countries strongly welcomed this expanded collaboration on FinTech and the opportunities the industry can deliver in relation to financial inclusion, increased innovation and improved outcomes for consumers.

Both countries recognized the importance of the UK-Singapore Digital Economy Agreement (DEA) signed earlier this year and the principle of free flow of data enshrined in it. They noted the importance of this agreement in underpinning the development of respective FinTech sectors and supporting future digital and innovation partnerships.

The UK and Singapore discussed their shared interests in sustainable finance as well as FinTech and innovation.

• Sustainable finance: Both countries noted continued momentum at COP27 to focus on implementation, including the need to mobilize capital for developing economies to finance the transition to net zero, using innovative approaches such as blended finance and carbon markets.

Transitional financing –

The UK and Singapore recognized the importance of transition plans and pathways to achieve the Paris Agreement’s goal of limiting global temperature increase to 1.5°C from pre-industrial levels. Both agreed to cooperate on transitional funding. As a first step, the two countries agreed to explore collaborative opportunities, working with partners such as the UK Transition Plan Taskforce and the Glasgow Financial Alliance for Net Zero (GFANZ) Asia Pacific office, which is based in Singapore, to drive international consistency in design and publication of transition plans.

Disclosure Standards –

The UK and Singapore confirmed their strong commitment to implementing the International Sustainability Standards Board (ISSB) disclosure standards. Both countries will continue to work with the International Organization of Securities Commissions (IOSCO), the ISSB and other international organizations to implement a comprehensive global baseline of sustainability-related disclosure standards that are interoperable with jurisdiction-specific requirements. Both countries also undertake to phase in mandatory climate-related financial information that provides consistent, comparable and decision-making information for market players and financial authorities.

Greenwashing –

The UK and Singapore discussed efforts to combat greenwashing, including in relation to sustainability disclosures and sustainable investment products. It was agreed that regulators should continue to discuss how to adopt a global, coherent and coordinated approach to regulatory oversight of ESG ratings and providers of data products, based on IOSCO’s recommendations. Both countries recognized the importance of comparable and reliable data to underpin the net zero transition, enabled by technology solutions such as Project Greenprint, and agreed to explore further cooperation opportunities in this area.

Natural capital and biological diversity –

Both countries agreed on the importance of a globally consistent framework for nature-related disclosures and exchanged views on how the efforts of the Taskforce on Nature-Related Financial Disclosures (TNFD) can contribute to the ISSB’s global baseline. Both countries agreed to work together to build capacity and understanding of the potential for nature loss and degradation to generate economic risks and cause adverse consequences for business and society, including through engagement with academia such as the University of Cambridge Institute for Sustainability Leadership (CISL ) and the Singapore Green Finance Centre, jointly with Imperial College Business School and Singapore Management University (SMU).

• FinTech and Innovation: The UK and Singapore exchanged views on the latest developments in the FinTech sector, including in relation to crypto-assets, and agreed on a number of priority areas for further cooperation.

Crypto asset sector –

Both countries shared their latest assessments of market development, opportunities, trends and long-term expectations for the crypto asset sector. They also discussed risks and challenges related to financial stability, regulatory arbitrage, and shared their progress in strengthening consumer protection rules and developing the regulation of stablecoins. There was strong agreement on the need to support the secure development of a digital asset ecosystem while ensuring that risks posed by digital assets are consistently managed. Both countries will continue to participate actively in the design of robust global regulatory practices through involvement in international multilateral forums such as the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI) and IOSCO.

E-wallets and digital banking –

Singapore provided updates on the progress of its e-wallet cap review and anticipated next steps. Both countries discussed the newly released consultation, with the UK giving views on the main proposals. Singapore also updated on the new digital banks that recently launched their operations in Singapore.

The two countries agreed on a roadmap for engagement in sustainable finance, FinTech and innovation, and other areas of mutual interest, leading up to the next dialogue to take place in London in 2023.

The UK and Singapore discussed their latest analysis of financial market developments and the economic outlook, including how Russia’s invasion of Ukraine has affected the global economy. Both countries agreed on the usefulness of ongoing exchange of information on this topic, including on economic sanctions.

The financial dialogue was chaired by Deputy Managing Director (Markets and Development) of the Monetary Authority of Singapore (MAS), Leong Sing Chiong, and Director-General (Financial Services) of HM Treasury (HMT), Gwyneth Nurse. Senior officials from MAS, HMT, Department for International Trade, Bank of England (BoE), Financial Conduct Authority (FCA) and the British High Commission in Singapore attended the dialogue.

Two UK-Singapore industry-led business roundtables on Sustainable Finance and FinTech took place on 24 November 2022. Industry participants from both countries participated in this discussion.

one. The Sustainable Finance Roundtable examined the implementation challenges companies face in meeting their net zero goals, and how the financial services industry can help meet these challenges.

b. The FinTech Roundtable discussed the opportunities and challenges facing FinTech firms and how these firms can better access foreign markets, including by partnering with financial institutions.

About the Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the implementation of monetary policy and close macroeconomic monitoring and analysis. It manages Singapore’s exchange rate, official foreign exchange reserves and banking sector liquidity. As an integrated financial regulator, MAS promotes a healthy financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurance companies, capital market intermediaries, financial advisers and financial market infrastructures. It is also responsible for well-functioning financial markets, good conduct and investor education. MAS also works with the financial services industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, the use of technology and the upgrading of competence in the financial industry.

About HM Treasury

HM Treasury is the UK Government’s Department of the Economy and Finance, which maintains control over public spending, sets the direction of UK economic policy and works to achieve strong and sustainable economic growth.

The department is responsible for:

• public expenditure: including departmental expenditure, public pay and pensions, annual administered expenditure (AME) and welfare policy, and capital investment
• financial services policy: including regulation of banks and financial services, financial stability and ensuring competitiveness in the city
• strategic oversight of the UK tax system: including direct, indirect, business, property, personal and corporation tax
• delivery of infrastructure projects across the public sector and facilitation of private sector investment in UK infrastructure
• ensure that the economy grows sustainably

[1] The FinTech bridge provides a structured engagement that will help the development of policy actions, improve assessments of emerging issues, such as the development of distributed ledger technology and data sharing, and support trade and investment flows between our respective markets.