The establishment of a financial innovation partnership (FIP) to boost collaboration between the US and the UK has been announced in a joint release by the US Department of the Treasury and the UK’s HM Treasury.
News of the partnership was confirmed following the second meeting, in Washington DC, of the US-UK Financial Regulatory Working Group, which was established to facilitate even closer collaboration on financial services issues between Treasuries of the two countries and their financial regulators.
A joint release stated that: “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 release stated that the 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 UK.
Commenting on the new partnership, Heath Tarbert, acting under secretary for international affairs at the US Department of the Treasury, said: “Technology is the future of financial services, and innovation drives growth. By jointly fostering entrepreneurial breakthroughs, we will write a new chapter in the longstanding friendship between America and Britain.”
John Glen, economic secretary to HM Treasury said: “The United Kingdom and United States lead the world in financial services and are at the cutting edge of innovative fintech. By working more closely together through this new partnership we can help firms in both our countries to go even further to harness new technologies, share expertise and serve consumers.”
UK investment minister Graham Stuart added that the US is the UK’s largest bilateral trading partner and the announcement marked a further positive step towards deepening the already extensive economic ties between the two countries.
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