The Financial Conduct Authority (FCA) and the Hong Kong Monetary Authority (HKMA) have entered into a partnership to foster greater collaboration between the two in promoting financial innovation.

According to the agreement, the FCA and HKMA will closely collaborate on a number of initiatives such as referrals of innovative firms, joint innovation projects, information exchange and experience sharing.

This is the fifth co-operation agreement that the FCA has signed with other international authorities following similar deals with Australia, Singapore, South Korea, and China.

The FCA has a statutory objective as a regulator to make financial services markets work well. The deal with the HKMA aims to reduce the barriers for authorised firms looking to grow to scale overseas as well as to assist non-UK innovators interested in entering the financial services market.

Christopher Woolard, executive director of strategy and competition at the FCA, said: “Alongside promoting innovation in UK businesses, we also want to see the best firms from around the world coming to the UK. Both consumers and the wider UK economy benefit from this transfer of ideas and innovation.

“The agreement signed today with the HKMA is a good example of this type of international co-operation and we look forward to working to promote innovation and reduce barriers to entry for firms both here in the UK and in Hong Kong.”

The agreement is a key initiative of the Fintech Facilitation Office (FFO) of the HKMA and presents opportunities for financial and FinTech companies in the autonomous territory to enhance their services and extend their global footprint.

Shu-Pui Li, executive director of financial infrastructure at the HKMA, added: “We are delighted to sign the Agreement with the FCA. Both Hong Kong and the UK are well positioned as global financial centres and premier locations for financial innovation. Many FinTech firms and financial institutions in the two markets have already gained a solid local footing.

“Collaboration between the HKMA and the FCA will create significant synergy for the two markets by enabling FinTech firms and financial institutions to extend their global reach and learn from their foreign counterparts. It will also help to enhance services delivered by financial institutions.”

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