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Singapore, 25 November 2022… The United Kingdom (UK) and Singapore today held the 7th UK-Singapore Monetary Dialogue in Singapore. The two countries renewed their commitment to deepen the UK-Singapore financial partnership agreed in 2021, discussed mutual priorities such as sustainable finance, fintech and innovation and agreed on further cooperation in these areas.
In Financial Dialogue, UK and Singapore agree Memorandum of Understanding on UK-Singapore FinTech Bridge[1]. FinTech Bridge seeks to support continued growth, investment and technological innovation in the sector, building on the active interest of fintech players in the fields of payments, regtech and wealth management. Both countries strongly welcomed this closer cooperation on fintech and the opportunities the industry can offer in relation to financial inclusion, enhanced 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 contained therein. They noted the importance of this agreement in supporting the development of the respective fintech sectors and future digital and innovation partnerships.
The UK and Singapore discussed their joint 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.
Transition Finance –
The UK and Singapore recognized the importance of transition plans and pathways to achieving the Paris Agreement’s goal of limiting global temperature increases to 1.5°C above pre-industrial levels. The two agreed to work together on transition finance. As a first step, the two countries agreed to explore opportunities for collaboration, working with partners such as the UK Transition Plan Taskforce and the Glasgow Financial Alliance for Net Zero (GFANZ) Asia Pacific Office, based in Singapore, to enhance international coherence. Design and publication of transition plans.
Advertisement 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), 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 committed to mandatory climate-related financial disclosures providing consistent, comparable and decision-useful information for market participants and financial authorities.
Green washing –
The UK and Singapore discussed efforts to combat greenwashing, including in relation to sustainability advertising and sustainable investment product labels. It was agreed that regulators should continue to discuss how to adopt a global, coherent and coordinated approach to ESG ratings and regulatory oversight of data products providers 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 collaboration opportunities in this area.
Natural Capital and Biodiversity –
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 Disclosure (TNFD) could contribute to the ISSB’s global baseline. Both countries will collaborate to increase understanding of the potential and understanding of nature loss and degradation to create financial risks and create adverse impacts on business and society, including by engaging with academics such as the Cambridge Institute for Sustainability Leadership (CISL) and the University of Cambridge Institute for Sustainability Leadership. was agreed. Co-managed by the Singapore Green Finance Centre, Imperial College Business School and Singapore Management University (SMU).
- FinTech and Innovation: The UK and Singapore exchanged views on recent 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 developments, 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 regulations on consumer protection and developing regulation of stablecoins. There was strong agreement on the need to support the secure development of the digital assets ecosystem while ensuring that risks posed by digital assets are continuously managed. Both countries will continue to actively participate in shaping stronger global regulatory practices through engagement in international multilateral fora such as the Financial Stability Board (FSB), Payments and Market Infrastructures (CPMI) and IOSCO.
E-Wallets and Digital Banking –
Singapore has provided updates on the progress of its review of e-wallet caps and expected next steps. The two countries discussed the recently released consultation, in which the UK gave views on key proposals. Singapore has also updated on new digital banks that have started their operations in Singapore recently.
The two countries agreed on a roadmap for engagement in sustainable finance, fintech and innovation and other areas of mutual interest, leading to the next dialogue to be held 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 the subject, including financial sanctions.
The financial dialogue was co-chaired by Mr Leong Sing Cheong, Deputy Managing Director (Markets and Development) of the Monetary Authority of Singapore (MAS) and Ms Gwyneth Nurse, Director General (Financial Services) of HM Treasury (HMT). Senior officials from MAS, HMT, Department for International Trade, Bank of England (BoE), Financial Conduct Authority (FCA) and British High Commission in Singapore attended the dialogue.
Two industry-led UK-Singapore business roundtables on sustainable finance and fintech took place on 24 November 2022. Industry participants from both the countries participated in the discussion.
A sustainable finance roundtable examined the implementation challenges facing corporates in meeting their net zero goals and how the financial industry can help meet these challenges.
b The fintech roundtable discussed the opportunities and challenges faced by fintech companies and how these companies can better penetrate 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 the central bank, MAS promotes sustainable, non-inflationary economic growth through the conduct of monetary policy and macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves and liquidity in the banking sector. As an integrated financial watchdog, MAS promotes a strong financial services sector through its prudential supervision of all financial institutions in Singapore – banks, insurance companies, capital market intermediaries, financial advisers and financial market infrastructure. It is also responsible for well-functioning financial markets, fair conduct and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, adoption of technology and upgrading of skills in the financial industry.
About HM Treasury
HM Treasury is the UK government’s economic and finance ministry, 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 sector salaries and pensions, Annual Managed Expenditure (AME) and welfare policy and capital investment
- Financial Services Policy: Regulation of banking and financial services, including ensuring financial stability and competitiveness in the city
- A strategic overview of the UK tax system: including direct, indirect, business, property, personal tax and corporation tax
- Facilitating the delivery of infrastructure projects across the public sector and private sector investment in UK infrastructure
- Ensuring that the economy grows sustainably
[1] The FinTech Bridge provides a structured connection that will help develop policy actions, enhance the assessment of emerging issues, such as the development of distributed ledger technology and data sharing, and support trade and investment flows between our respective markets.
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