REGULATION

FCA opens up Japanese market for UK FinTech firms

FCA and Japanese authorities exchange letters to provide a regulatory referral system for FinTech companies.

By Hayley McDowell hayley.mcdowell@strategic-i.com March 09, 2017 1:00 PM GMT

Regulators in the UK and Japan have exchanged letters of agreement on a cooperation framework to support FinTech in both regions.

The Financial Conduct Authority (FCA) and the Financial Services Authority of Japan (JFSA) have agreed to provide a regulatory referral system for innovator businesses in Japan and the UK.

For Japan, the agreement will encourage Japanese start-ups to engage with innovative financial businesses globally and will attract UK companies to the Japanese market.

In the UK, it will provide invaluable knowledge to UK firms hoping to enter the Japanese market and assist non-UK innovators interested in entering the market the FCA oversees.

Shunsuke Shirakawa, vice commissioner for international affairs at the JFSA, explained this is the first case of creating a pro-FinTech framework with another country.

“The UK is one of the world-leading FinTech countries, generating £6.6 billion 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,” he said.

Christopher Woolard, executive director of strategy and competition at the FCA, added the 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."