US and UK agree FinTech pact
Collaboration between the US and the UK on financial services was boosted by the establishment of a Financial Innovation Partnership. The Partnership between the US Department of the Treasury and the UK’s HM Treasury will build on and deepen bilateral engagement on emerging trends in financial services innovation. This will include encouraging collaboration in the private sector, sharing information and expertise about regulatory practices, and promoting growth and innovation.
The Financial Innovation Partnership (FIP) will focus on two main areas:
- Regulatory engagement: Dialogue between authorities and with the private sector is critical to identify and address potential regulatory synergies, share lessons, and develop closer working relationships. The US and UK will build on existing regulatory cooperation by discussing regulatory developments and sharing experiences on technical issues related to innovation in financial services.
- Commercial engagement: The FIP also seeks to promote a dynamic private sector that supports entrepreneurs and new business models – a necessary driver of financial innovation. It will provide enhanced and regular opportunities for the private sector in one country to engage with industry associations, and market participants in the other country. Through the FIP, the UK Department of International Trade (DIT) will bring UK firms to the US and the US Commerce Department will coordinate trade promotion missions to the United Kingdom.
The Partnership was announced at the US-UK Financial Regulatory Working Group, which was established to facilitate even closer collaboration on financial services issues between US and UK Treasuries, and US and UK financial regulators.