What has happened?
The UK's HM Treasury and the U.S. Department of the Treasury are to boost collaboration on financial services with the creation of the Financial Innovation Partnership (FIP).
What does this mean?
According to the departments, the FIP will help "deepen bilateral engagement" on emerging trends in financial services innovation, including private sector collaboration, sharing information and expertise on regulatory practices and promoting growth and innovation.
The Partnership will focus on two main areas:
- regulatory engagement: as the dialogue between authorities and the private sector is seen as critical to identify and address regulatory synergies, share lessons and develop closer working relationships; and
- commercial engagement, with the FIP also seeking to promote a private sector that supports entrepreneurs and new business models, which are key to financial innovation.Through the FIP, the UK Department of International Trade will bring UK firms to the U.S. and the U.S. Commerce Department will do the same in the UK.
Heath Tarbert, Acting Under Secretary for International Affairs at the U.S. 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.”
Please contact us if you would like to know what FIP may mean for your organisation.
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