UK and Singapore Strengthen Collaboration in Sustainable Finance and FinTech
The 9th UK-Singapore Financial Dialogue took place in Singapore, focusing on cooperation in priority areas such as sustainable finance, FinTech, and innovation. Here’s a summary of the key discussions and outcomes:
Sustainable Finance
- Transition Planning: Both countries emphasized the importance of globally comparable transition plans for scaling transition finance. Updates were shared on the Transition Plan Taskforce’s disclosure framework and Transition Planning Guidelines, highlighting efforts to build climate resilience and manage risks.
- Disclosure Standards and ESG Ratings: The UK and Singapore reaffirmed their commitment to implementing ISSB’s standards to enhance sustainability-related disclosures globally. Discussions also revolved around voluntary codes of conduct for ESG ratings and data product providers.
- Sustainable Infrastructure and Investment: Collaboration plans were made to develop and finance green finance and energy transition projects in Asia, addressing the funding gap for green and transition finance.
FinTech and Innovation
- Artificial Intelligence (AI): Discussions focused on financial stability risks and cyber security risks associated with increased AI usage. Collaboration opportunities through international fora such as IOSCO and FSB were explored.
- Cryptoassets: Updates were provided on the UK’s regulatory regime for cryptoassets, including plans to regulate certain stablecoins and create an enabling environment for stablecoin issuers and service providers.
- Central Bank Digital Currency (CBDC): Progress updates were shared following the publication of the “digital pound” consultation response paper. Discussions also included infrastructure supporting tokenized transactions.
- Tokenisation and DLT: Both countries discussed the benefits of asset and fund tokenisation to the financial ecosystem and agreed to share learnings on regulatory treatment of digital assets.
NBFI Sector and Cross-Border Payment Connectivity
- Addressing Risks in the NBFI Sector: Efforts to enhance authorities’ ability to monitor risks in NBFIs and finalize international policy work on NBFI policies were highlighted.
- Cross-Border Payment Connectivity: Commitment to the G20’s Roadmap to Enhancing Cross-Border Payments and progress updates on Project Nexus were shared.
Future Engagements
- Industry-Led Business Roundtables: Roundtables on Transition Planning and Generative AI are scheduled to explore regulatory initiatives and challenges posed by generative AI technology.
- Commitment to Engagement: Both countries renewed their commitment to further cooperation in sustainable finance and FinTech through roadmap engagements.
The Dialogue was chaired by senior officials from MAS and HMT, underscoring the importance of bilateral cooperation in advancing sustainable finance and FinTech innovation.
Source: mas.gov.sg
