Tag: Treasury

The press release issued by HM Treasury on 9 December 2022.

The Chancellor Jeremy Hunt heard directly from oil and gas companies in a Fiscal Forum meeting in Edinburgh this morning (9 December).

The press release issued by HM Treasury on 9 December 2022.

Chancellor of the Exchequer Jeremy Hunt today unveiled the “Edinburgh Reforms” of UK financial services – over 30 regulatory reforms to unlock investment and turbocharge growth in towns and cities across the UK.

• Chancellor of the Exchequer Jeremy Hunt unveils new “Edinburgh Reforms” of financial services, to help turbocharge growth and deliver a smarter and home-grown regulatory framework for the UK – that is both agile and proportionate.
• Speaking at an industry roundtable in Edinburgh today, the Chancellor will announce new plans to seize the benefits of Brexit by setting out a detailed timeline establishing the government’s approach to repealing burdensome pieces of retained EU law.
• Reforms deliver the next chapter of the government’s vision for UK financial services, set out at Mansion House 2021.

The Chancellor will set out plans to repeal, and replace, hundreds of pages of burdensome EU retained laws governing financial services. This will establish a smarter regulatory framework for the UK that, is agile, less costly and more responsive to emerging trends.

These plans included a commitment to make substantial legislative progress over the course of 2023 on repealing and replacing EU-era Solvency II – the rules governing insurers balance sheets which is expected to unlock over £100 billion of private investment for productive assets such as UK infrastructure.

The financial services sector is vital for Britain’s economic strength, contributing £216 billion a year to the UK economy. This includes £76 billion in tax revenue, enough to fund the entire police force and state school system, while employing over 2.3 million people – with 1.4 million outside London.

As announced in the Autumn Statement, the government will look to announce changes to EU regulations in four other high growth industries by the end of next year, including digital technology, life sciences, green industries and advanced manufacturing.

Chancellor of the Exchequer, Jeremy Hunt said:

We are committed to securing the UK’s status as one of the most open, dynamic and competitive financial services hubs in the world.

The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.

And we will go further – delivering reform of burdensome EU laws that choke off growth in other industries such as digital technology and life sciences.

Economic Secretary to the Treasury, Andrew Griffith said:

The UK is a financial services superpower – and we have long benefited from, and are committed to, high quality regulatory standards.

Scotland’s role in maintaining our status as the global benchmark for regulation is crucial – with Edinburgh and Glasgow the two largest UK hubs outside of London.

Our reforms deliver smarter regulation of financial services that will unlock growth and opportunity in towns and cities across the UK.

The work to repeal, and where appropriate replace, retained EU law governing the sector has been guided by industry – and split into two initial tranches. These will focus on delivering reform to areas which provide the most significant boost to UK growth and competitiveness, and we will set out further detail on future tranches over time.

Today’s announcement delivers the next chapter in the roadmap for UK announced at Mansion House 2021 for a UK financial services sector that is open, sustainable, and technologically advanced – one that is globally competitive and acts in the interests of communities and citizens. This vision will create jobs, support businesses, and power growth across all four parts of the UK.

A competitive marketplace promoting the effective use of capital

The Edinburgh Reforms ensure that the UK’s financial markets are among the most open and attractive in the world. They deliver this by overhauling the UK prospectus regime to make it more attractive for firms to list and raise capital here; reforming the rules governing Real Estate Investment Trusts, to reduce friction and allow savers to more easily access higher returns; formally reviewing the provision of investment research in the UK, including the effects of the EU’s MiFID unbundling rules, which aren’t applied in leading markets such as the US; and working with the regulators and companies to trial a new class of wholesale market venue that operates on an intermittent basis – improving companies access to capital before they publicly list.

The government has also announced that the ring-fencing regime will be reformed in response to the recommendations of the Skeoch Review – including by freeing retail focussed banks from the regime – easing unnecessary regulatory burdens on firms while maintaining protections for depositors.

The Chancellor has also issued new remit letters to the Financial Conduct Authority and Prudential Regulation Authority emphasising the new secondary competitiveness objectives. Regulators will have a duty to facilitate, subject to aligning with relevant international standards, the international competitiveness of the UK economy and its growth in the medium to long term.

We are committed to seeing financial service firms deploy more capital in productive assets such as UK infrastructure and low carbon and clean energy. This will be facilitated by Long-Term Asset Funds – a new type of fund structure tailored to the UK market, replacing the EU’s ineffective European Long Term Investment Fund regime, which will be repealed from the UK rulebook. The LTAF regime has recently seen its first application from an issuer of this new type of fund.

Delivering for consumers

The government is committed to enabling consumers to access the benefits of new products and technologies, while ensuring they remain protected. To support this, the government is today publishing its first consultation on proposals to modernise the Consumer Credit Act – simplifying the regime to encourage innovation in the credit sector and cutting costs for consumers and businesses.

A sector at the forefront of innovation and technology

The reforms build on the UK’s desire to harness the benefits of emerging technologies, including committing to shortly publish a consultation on proposals to establish a UK Central Bank Digital Currency– which could one day see Brits using a digital pound, capturing the benefits of the underlying blockchain technologies. Other measures will see the Investment Management Exemption extended to cryptoassets, ensuring more overseas investment can flow into the sector – and the government has recommitted to establishing the Financial Markets Infrastructure Sandbox in 2023, allowing firms and regulators to safely test, adopt and scale new technologies that could transform financial markets.

A world leader in sustainable finance

The UK is working to become the world’s first net-zero aligned financial centre, and today’s measures will further deliver on this ambition, including by committing to publish a new green finance strategy in early 2023, and to consult on bringing Environmental, Social and Governance (ESG) ratings providers into the City Watchdog’s regulatory perimeter, to ensure these products are transparent and use consistent standards. Achieving this ambition will see more investment in sustainable energy supplies such as nuclear, hydrogen and offshore wind – delivering new opportunities and well-paying jobs.

More broadly, the government’s Financial Services and Markets Bill successfully completed its remaining stages in the Commons on Wednesday and is expected to receive Royal Assent by Spring 2023. This further delivers on the government’s vision for financial services, including by bringing certain types of stablecoins within the payments regulatory perimeter; protecting access to cash for millions of people that reply on it; and enabling the Payments Systems Regulator to force banks to reimburse the victims of Authorised Push Payment (APP) fraud.

The press release issued by the Treasury on 8 December 2022.

Exchequer Secretary James Cartlidge hails power of future green technologies in strengthening UK’s energy security.

Mega Amp Spherical Tokamak Upgrade (MAST-U) machine tackles further technical challenges for long-term viability of future fusion powerplants

Experiments test the integration of a high-performance core plasma with strong dissipation in the Super-X divertor configuration

A fusion energy machine vital for the delivery of the UK’s first prototype powerplant has started a crucial second round of experiments to help make ‘star power’ part of the world’s future energy mix.

The United Kingdom Atomic Energy Authority’s (UKAEA) Mega Amp Spherical Tokamak-Upgrade (MAST-U) will run the experiments until the end of January 2023.

Following a visit to UKAEA in Culham, Oxfordshire, earlier this week, Exchequer Secretary to the Treasury, James Cartlidge, said:

“It was an inspiring tour of UKAEA where I was able to see how the UK is developing fusion energy, the process that powers the sun, to generate carbon-free electricity.

“The visit reinforced our commitment to increasing public R&D spending to record levels of £20 billion a year by 2024/25, which includes funding for green tech of the future, like this.”

MAST-U resembles the shape of a cored apple, in contrast to the ring-shaped record-breaking JET (Joint European Torus). This configuration is currently the preferred design for the UK’s prototype fusion plant, STEP (Spherical Tokamak for Energy Production).

Fusion energy offers the potential of an abundant, inherently safe low-carbon electricity supply. It involves fusing hydrogen particles in a hot gas known as a ‘plasma’ to unlock large amounts of energy.

Operating fusion technologies requires a careful balancing act of controlling extreme heat, gas and magnetic fields, amongst other complex systems.

Last year, MAST-U’s novel exhaust system, Super-X, successfully demonstrated its effectiveness by generating a tenfold reduction in the energy fluxes of the plasma channelled out of the machine, which would allow components in future commercial tokamaks to last longer.

The current run of experiments will seek to investigate how the compact tokamak can combine the benefits from this exhaust using different parameters – higher temperature and pressure, and increased performance caused by operating within a stronger magnetic field – as well as improving shape control of the plasma within the machine.

The core plasma shape will be controlled in real-time and in collaboration with General Atomics.

MAST-U’s experiments will also support the study of detachment physics – reduction of pollution of the core plasma by impurities coming from the wall – for EUROfusion, a consortium of national research institutions located in the EU, Switzerland, UK and Ukraine.

The phased work will investigate how plasma confinement can be optimised for future powerplant conditions.

Commenting on the new experiments, Professor Fulvio Militello, Director of Tokamak Science, UKAEA, said:

“To create fusion in a powerplant, a plasma must be sustained inside a tokamak whilst optimising three conditions: temperature, density and confinement time.

“The new round of experiments conducted by MAST-U will test the integration of a high-performance core plasma with strong dissipation in the Super-X divertor configuration.”

Results from the experiments will contribute to the success of the government-funded STEP programme, which is aiming to demonstrate the feasibility of putting fusion energy on the grid, targeting operations by 2040.

MAST-U achieved its first plasma in 2020 after it was rebuilt to enable higher performance, including longer times plasmas are held in confinement, increased heating power and a stronger magnetic field, alongside its innovative plasma exhaust system.

“UKAEA is exploring pathways to compact and affordable fusion machines and believes the apple-core design holds real promise” continued Professor Militello.

As well as STEP, MAST-U will also aid preparations for ITER – the world’s largest science megaproject, now being built in the South of France, which intends to demonstrate the viability of fusion on an industrial scale.

The press release issued by HM Treasury on 8 December 2022.

John Gerard McGarvey, 37, from Rutherglen, has been disqualified as a director for 11 years after claiming two separate Bounce Back Loans totalling £100,000, and then using the money for personal benefit.

McGarvey was the sole director of CKO Civil Engineering and Surveying Limited, which was incorporated in October 2019 and ran as a surveyor’s firm based in Kirkinitlloch in Scotland until it went into liquidation in November 2021.

CKO applied for a Bounce Back Loan of £50,000 in July 2020, with McGarvey stating the company had a previous year’s turnover of £225,000.

Bounce Back Loans were government-backed loans introduced to support businesses through the pandemic. Under the rules of the scheme, companies could apply for loans of up to 25% of their 2019 turnover, allowing them to borrow from £2,000 to a maximum of £50,000, as long as the money was to be used for the economic benefit of the business.

Businesses were not allowed to apply for an additional loan unless they had originally borrowed less than the maximum amount.

But CKO applied for a second Bounce Back Loan of £50,000 just four weeks later, in August 2020. This time McGarvey applied to a different bank and stated that the business had a previous year’s turnover of £218,000.

The company struggled to survive post-Covid, and went into liquidation owing around £183,000, which triggered an Investigation by the Insolvency Service.

Investigators discovered that McGarvey had applied for two loans – which was against the rules of the scheme – and had exaggerated CKO’s turnover both times. The company’s most recent accounts showed a turnover of only around £46,400.

They also discovered that McGarvey had used the full £100,000 for his own gain, rather than to support his business.

The Secretary of State accepted a disqualification undertaking from John Gerard McGarvey after he did not dispute he caused CKO to receive two Bounce Back Loans totalling £100,000 to which the business wasn’t entitled, and then used money for his personal benefit, rather than for the economic benefit of the business.

His disqualification started on 28 October this year and lasts for 11 years.

The disqualification undertaking prevents McGarvey from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Steven McGinty, Investigation Manager, said:

“Not only did John McGarvey grossly exaggerate the company’s turnover to secure an initial loan, he also applied to a second bank for another loan his company wasn’t entitled to. To compound his actions, he used the money for his personal gain.

“His 11-year ban should serve as a warning that if you abuse government support, we will use our full powers to bring you to account.”

The press release issued by the Treasury on 7 December 2022.

Rising costs and interest rates across the economy are a cause of concern for consumers in many areas of their lives, but the government understands that mortgage borrowers may be particularly worried about increases to their monthly mortgage payment, which is likely to be their largest monthly outgoing payment.

Today, 7th December, the Chancellor met with leaders of the UK’s major mortgage lenders, the Chair of the Financial Conduct Authority (FCA), and Martin Lewis of Money Saving Expert. They discussed how lenders provide support for those who encounter problems paying their mortgage.

At the meeting, lenders committed to help all their customers by:

• enabling customers who are up to date with payments to switch to a new competitive, mortgage deal without another affordability test (see further information 1)
• providing well-timed information to help customers plan ahead should their current rate be due to end
• offering tailored support to those who start to struggle with payments which will vary by lender, but may include extending the term of the mortgage to make monthly payments lower, a short term reduction in monthly payments or accepting interest-only payments for a period where appropriate (see further information 2)
• ensuring highly trained and experienced staff are on hand to help where needed

The government confirmed:

• action to make Support for Mortgage Interest easier to access; if you are on Universal Credit you may be able to receive help with your mortgage interest payments after three months
• record levels of funding for the Money and Pensions Service to provide debt advice in England

The FCA announced:

• a consultation on draft guidance clarifying how lenders can support borrowers impacted by the rising cost of living
• information for borrowers on the options and support available if they are struggling with payment

Sound money and a stable economy are the best ways to deliver lower mortgage rates, more jobs and long-term growth. Economic stability relies on fiscal sustainability and the Autumn Statement delivered on 17th November puts the public finances onto a sustainable footing, with debt falling.

Mortgage lenders, the FCA and the government will continue working closely together to ensure that the mortgage market works well for all homeowners, in particular those facing financial difficulty. Discussions will continue to take place with lenders on what more they are able to do to inform and support their customers going forward. However, if you are worried about making your mortgage repayments, it is important to speak to your lender as soon as possible.

Martin Lewis, founder of MoneySavingExpert.com, said:

“The major concern for people’s mortgages – and the knock-on impact of mortgage increases on rents – is the situation in the spring, when we expect interest rates to be higher, energy prices to be rising, and other cost of living impacts.

“So the most important thing is that now the conversations have started about what flexibility and forbearance measures can be put in place to help those struggling. The commitments today set a good direction, and after helpful conversations I’m hopeful that further progress will be made. For those worried about making mortgage repayments, the sooner you communicate with your lender the better.”

Debbie Crosbie, CEO of Nationwide Building Society, said:

“We are a mutual and helping members buy and stay in their home is central to what we do. We’ve reduced rates for those reaching the end of their deals so they can access a fixed rate below 5%, regardless of LTV or tenure. For additional support, our options include term extensions and forbearance tailored to individual circumstances. We’ve also given an additional £1 million to debt charities and partners to support people in financial hardship.”

David Duffy, CEO of Virgin Money, said:

“We know that many of our customers will have to make difficult decisions in the current economic environment, and we are being proactive in offering our support to those in need. Today’s commitments represent an important step in ensuring that consumers are well supported in the coming period.”

Matt Hammerstein, CEO of Barclays UK, said:

“We are committed to helping every borrower manage their repayments while adjusting to the current environment. The announcements made by the Government and mortgage lenders today to ensure support is available for those who may or do encounter challenges making mortgage payments, both now and in the future, are a critical part of that.

“At Barclays, we always work with our customers to find any feasible way to keep them in their home, which is why we have a dedicated team who are trained to offer dedicated and tailored support to each individual borrower, using a wide range of support options. We also have a variety of tools and information available to help customers directly manage their finances and stay in control, as we know some prefer to do that on their own, including information on what steps to take if they are struggling. We also know some customers may be more comfortable speaking to an independent third party, so we also help customers be in touch with our debt advice partners, including Citizens Advice, StepChange and the National Debtline.”

Mike Regnier, CEO of Santander UK, said:

“We welcome HM Treasury’s involvement to support mortgage borrowers through the challenges posed by the increase in cost of living and are keen to continue to work collaboratively with the Government, supervisors, and the wider industry on this issue.

“We remain fully committed to supporting customers who may face additional pressures on their finances over the months ahead.”

Alison Rose, CEO of NatWest Group, said

“Through these incredibly difficult times it is our priority to support people, families and businesses throughout the country and help navigate them through this economic uncertainty. We encourage anyone who is experiencing financial difficulty or is just worried about the future to get in touch and talk to us. We have highly trained colleagues who are there to listen, understand and work with them to find a way forward.

“Support for our customers will be tailored to their individual needs, and could include such things as forbearance, breathing space, repayment plans, or if it’s right and affordable for the customer, extending a mortgage term to spread payments or a temporary switch to an interest only mortgage. We have proactively contacted customers 8 million times so far this year to help them to get more control over their finances, and we will continue to play an active role in supporting customers and communities across the country.”

Jasjyot Singh OBE, CEO of Consumer Lending, Lloyds Banking Group, said:

“We’re committed to making homeowners feel supported in the coming months. We want to talk to anyone who feel like they might be facing difficulty so that we can find appropriate, tailored solutions. The earlier we talk to someone who might be struggling, the more tools we have to help. We will continue to work closely with the Government and the FCA to ensure the best support for our mortgage customers.”

Ian Stuart, CEO of HSBC UK, said:

“HSBC UK has a programme in place for proactively reviewing where hardship might be on the horizon, and helping prevent customers from falling into financial difficulty. We also work closely with customers already experiencing financial difficulty to understand their individual circumstances and identify the right solution for them.

“For mortgage customers experiencing financial difficulty we stand ready to help and have a number of options available that are tailored to individual circumstances. We would strongly encourage people not to wait until they are in financial difficulty before seeking help. The earlier they can engage with their lender the better.”

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:

“Most borrowers are able to keep up with their mortgage payments and should continue to do so. But if you’re struggling to pay your mortgage, or are worried you might, you don’t need to struggle alone. Your lender has a range of tools available to help, so you should contact them as soon as possible.”

Further information

1 – Applies to 97% of the mortgage market, where customers are up to date with payments and not seeking to borrow more or change their repayment type or term.

2 – For some customer solutions there may be an impact on the borrower’s credit rating.

The press release issued by HM Treasury on 6 December 2022.

Savio Gilbert Pereira, 46, and Sajid Anver Valimohammed, 37, have been disqualified as company directors for a total of 19 years following separate Insolvency Service investigations which uncovered financial misconduct.

Pereira, of Market Harborough was sole director of Himalayan Zest Takeaway Limited, which was incorporated in April 2018 and traded as Himalayan Zest on Market Street in Lutterworth until it went into liquidation in November 2021.

In June 2020, Pereira applied for a Bounce Back Loan on behalf of Himalayan Zest. Bounce Back Loans were government-backed loans designed to help businesses stay afloat during the Covid-19 pandemic.

Under the rules of the scheme, companies could apply for loans of between £2,000 and £50,000, up to a maximum of 25% of their turnover for 2019.

Pereira stated that Himalayan Zest’s turnover was around £207,500, which allowed the restaurant to receive the maximum £50,000 loan.

When the business went into liquidation the following year owing around £51,500, it triggered an investigation by the Insolvency Service which found that Pereira had exaggerated Himalayan Zest’s turnover in order to falsely claim the loan.

Investigators discovered that the company only had around £54,600 in its bank account following receipt of the Bounce Back Loan, and between June and August that year, Pereira had made a £10,000 payment to himself, £28,000 in various debit payments to an unknown recipient and had withdrawn a total of £16,800 in cash.

Pereira was unable to prove that these transactions were for the economic support of the restaurant.

A second director, Sajid Anver Valimohammed, of Leicester, was director of J Dee Designs Ltd, which was incorporated in July 2019 and traded as a fashionwear finisher from Upper Charnwood Street in Leicester until it went into liquidation in December 2020.

But Valimohammed had failed to keep business accounts and records – a legal requirement of company directors – and was unable to hand them over to the company’s liquidators, which led to an investigation by the Insolvency Service.

Investigators discovered that Valimohammed had withdrawn more than £286,000 from the company bank account through 199 separate transfers with the reference ‘Mrref Self FT’ during the time J Dee Design was in business.

They found that around £315,300 was withdrawn from J Dee Design’s bank account during the period – including £30,000 from a Bounce Back Loan that the company had applied for – but Valimohammed could not prove that the transactions were for legitimate trading activity, or whether the loan money had been used for the benefit of the company.

And due to his failure to keep company accounts, investigators were also unable to verify whether J Dee Designs had paid the correct amount of tax it owed, or to ascertain the true financial position of the company when it went into liquidation, including whether liquidators would be able to make any recovery of debts.

Valimohammed did not contest the disqualification order at court and was banned from being a director for 8 years on 9 November this year. His ban began on 30 November and the court also awarded full costs to the Insolvency Service.

Separately, the Secretary of State accepted a disqualification undertaking from Savio Pereira in October, after he did not dispute that he had caused his restaurant to falsely apply for a Bounce Back Loan of £50,000, and had failed to use the money for the economic benefit of the company.

Pereira’s disqualification started on 15 November this year and lasts for 11 years. The bans prevent the two directors from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

Dave Elliott, Chief Examiner at The Insolvency Service, said,

“The Insolvency Service takes Bounce Back Loan abuse and the failure to keep, preserve and deliver up books and records very seriously.

“The length of these directors’ bans reflects the gravity of their misconduct, and should serve as a warning to others.”

The press release issued by HM Treasury on 2 December 2022.

The Price Cap Coalition of the G7, the European Union and Australia have set a cap on seaborne Russian crude oil at $60.

• The price cap will be enforced in the UK from 5 December 2022, and across coalition jurisdictions.
• Third countries will only be able to access services such as insurance, shipping and brokerage from Coalition countries if they trade Russian oil at or below the cap.
• The UK and its coalition partners will not make use of the cap, as they have already introduced an import ban on Russian oil.

The UK, in partnership with the G7 countries, Australia and the European Union, have today agreed to set the price cap on Russian crude oil traded by firms shipping oil to third countries at $60. This price will be kept under review. The UK and its coalition partners will only provide services facilitating the maritime transport of Russian oil if firms trade at or beneath this cap.

G7 finance ministers agreed to a cap in September as a way of undermining Putin’s ability to fund war in Ukraine through inflated global oil prices, while ensuring that third countries can continue to secure affordable oil.

A General Licence will be published shortly that will provide an Oil Price Cap exception for third countries, so that firms supplying oil to them are able to continue accessing services from Coalition countries after the 5th December, but only if trading Russian oil at or below the cap.

Insurance is one of the key services that enables the movement of oil by sea, particularly protection and indemnity (P&I) insurance which relates to third-party liability claims – the UK is a global leader in the provision of P&I cover, writing 60% of the global cover written by the International Group of the P&I clubs.

Measures on services that facilitate the maritime transportation of refined oil products will come into force on the 5th February, to align with EU timelines for a parallel measure.

Chancellor Jeremy Hunt said:

“The UK will stand with Ukraine and her people for as long as Putin’s war continues. We will not waver in our support and we will continue to look for new ways to clamp down on Putin’s funding streams wherever we can.”

United States Secretary of the Treasury Janet Yellen said:

“Together, the G7, European Union, and Australia have now jointly set a cap on the price of seaborne Russian oil that will help us achieve our goal of restricting Putin’s primary source of revenue for his illegal war in Ukraine while simultaneously preserving the stability of global energy supplies. Today’s announcement is the culmination of months of effort by our coalition, and I commend the hard work of our partners in achieving this outcome.”

To enforce the scheme the Treasury has set up a new team, based in the Office of Financial Sanctions Implementation. This team will set up the licensing and enforcement system for the Oil Price Cap; engage with industry to ensure readiness for the cap; and monitor the level and impact of the cap on an ongoing basis.

The press release issued by the Treasury on 1 December 2022.

The Chancellor of the Exchequer has this day appointed Rosemary Elizabeth Cooper to be Steward and Bailiff of the Three Hundreds of Chiltern.

The press release issued by HM Treasury on 25 November 2022.

• The UK and Singapore agree a Memorandum of Understanding (MoU) on the UK-Singapore FinTech Bridge to remove barriers to fintech trade and boost cooperation
• This will deepen engagement between businesses, and regulators, adding to previous co-operation
• Policy makers from both the UK and Singapore will meet regularly with the fintech sector to work to remove regulatory barriers to trade

The Fintech Bridge builds on an agreement signed in 2016 – which will remove barriers to fintech trade by opening new regular talks between regulators and businesses, in addition to previous areas of cooperation

This will increase the cooperation and sharing of information on emerging trends in the fintech sector. It will also break down barriers to trade for UK and Singaporean fintechs, boosting growth and investment opportunities.

Andrew Griffith MP, Economic Secretary to the Treasury said: said:

The UK and Singapore are among the world’s leading jurisdictions for fintech investment – and today’s announcement will only accelerate growth and innovation in our respective sectors.

The MoU we’ve announced today is crucial – and I would like to thank the Monetary Authority of Singapore for their constructive engagement throughout discussions.

CEO of Innovate Finance, Janine Hirt said:

Innovate Finance welcomes this announcement. A MoU between UK and Singapore will deliver a strengthened framework for vital regulatory and policy discussions between the two countries, enable innovation across financial services, and ensure businesses based in both the UK and Singapore have the ongoing support for their ambitions for growth to be realised.

We look forward to supporting future financial dialogues and business to business activity between these markets. We are also delighted to be working with the key organisations engaged to promote the opportunities this FinTech bridge has to offer, and to welcoming FinTech businesses to IFGS and UK FinTech Week next year.

Miles Celic, Chief Executive Officer, TheCityUK, said:

The UK and Singapore are two of the world’s most dynamic and innovative FinTech markets. The FinTech Bridge will drive exciting new opportunities and greater alignment of regulatory approaches will help with the expansion of FinTechs from the UK and Singapore into each other’s markets. Greater cooperation between government, regulators and industry will boost innovation and drive better outcomes for customers.

This MoU will also further deepen the engagement and opportunities between two of the premier international financial and related professional services centres.

The existing Regulatory Cooperation Agreement signed in 2016 has enabled the UK and Singaporean fintech sectors to closely align at a regulatory level. Today’s commitment goes further in a number of areas, making clear the business support available to firms, highlight opportunities in each other’s markets and creating a clear link between challenges firms face and policy discussions.

The MoU will come into effect next week once formalities have been completed on both sides.

The press release issued by HM Treasury on 25 November 2022.

HM Treasury and Monetary Authority of Singapore joint statement on the seventh meeting of the UK-Singapore Financial Dialogue.

Singapore, 25 November 2022… The United Kingdom (UK) and Singapore held the 7th UK-Singapore Financial Dialogue in Singapore today. Both countries renewed their commitment to deepening the UK-Singapore Financial Partnership that was agreed in 2021, discussed mutual priorities such as sustainable finance, FinTech and innovation, and agreed on further cooperation in these areas.

At the Financial Dialogue, the UK and Singapore agreed on a Memorandum of Understanding on the UK-Singapore FinTech Bridge[1]. The FinTech Bridge seeks to support continued growth, investment, and technological innovation in this sector, building on active interest of FinTech players in the areas of payments, RegTech and wealth management. Both countries strongly welcomed this deepened co-operation on FinTech and the opportunities the industry can deliver in relation to financial inclusion, enhanced innovation, and improved outcomes for consumers.

Both countries recognised the importance of the UK-Singapore Digital Economy Agreement (DEA) signed earlier this year, and the principle of the free flow of data which is enshrined in it. They noted the significance of this agreement in underpinning the development of respective FinTech sectors and supporting 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 mobilise capital to 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 recognised the importance of transition plans and pathways to achieve the Paris Agreement’s goal of limiting global temperature increase to 1.5°C from pre-industrial levels. Both agreed to work together on transition finance. As a first step, the two countries agreed to explore collaboration opportunities, working with partners such as the UK Transition Plan Taskforce and the Glasgow Financial Alliance for Net Zero’s (GFANZ) Asia Pacific office, which is based in Singapore, to drive international consistency in design and disclosure of transition plans.

Disclosure standards –

The UK and Singapore affirmed their strong commitment to the implementation of International Sustainability Standards Board (ISSB) disclosure standards. Both countries will continue to work with the International Organization of Securities Commissions (IOSCO), the ISSB and other international organisations to implement a comprehensive global baseline of sustainability-related disclosure standards that is interoperable with jurisdiction-specific requirements. Both countries also commit to phase in mandatory climate-related financial disclosures that provide consistent, comparable and decision-useful information for market participants and financial authorities.

Greenwashing –

The UK and Singapore discussed efforts to combat greenwashing, including in relation to sustainability disclosures and sustainable investment product labels. It was agreed that regulators should continue discussing how to adopt a global, coherent, and co-ordinated approach on regulatory oversight of ESG ratings and data products providers, grounded in IOSCO’s recommendations. Both countries recognised 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-based disclosures and exchanged views on how the efforts of the Taskforce on Nature-Related Financial Disclosures (TNFD) can contribute to the ISSB’s global baseline. Both countries agreed to collaborate to build capacity and understanding of the potential for nature loss and degradation to generate financial risks and cause adverse impacts to business and society, including through engaging with academia such as the University of Cambridge Institute for Sustainability Leadership (CISL) and the Singapore Green Finance Centre, co-managed by 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 co-operation.

Crypto-assets sector –

Both countries shared their latest assessments of market developments, opportunities, trends, and longer-term expectations for the crypto-assets sector. They also discussed risks and challenges relating to financial stability, regulatory arbitrage, and shared their progress in strengthening rules on consumer protection and developing the regulation of stablecoins. There was strong agreement on the need to support the safe development of a digital assets ecosystem while ensuring that risks posed by digital assets are consistently managed. Both countries will continue to actively participate in the shaping of robust global regulatory practices through engagement within international multilateral fora such as the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI) and IOSCO.

E-wallets and digital banking –

Singapore provided updates on the progress of its review of e-wallet caps and expected next steps. Both countries discussed the recently released consultation, with the UK providing views on the key proposals. Singapore also updated on the new digital banks that recently launched their operations in Singapore.

The two countries agreed to a roadmap for engagements in sustainable finance, FinTech and innovation, and other areas of mutual interest, leading up to the next Dialogue scheduled to take place in London in 2023.

The UK and Singapore discussed their latest analysis of financial market developments and economic outlook, including how Russia’s invasion of Ukraine has impacted the global economy. Both countries agreed on the usefulness of ongoing exchange of information on this topic, including on financial sanctions.

The Financial Dialogue was co-chaired by Deputy Managing Director (Markets and Development) of the Monetary Authority of Singapore (MAS), Mr Leong Sing Chiong, and Director General (Financial Services) of HM Treasury (HMT), Ms Gwyneth Nurse. Senior officials from MAS, HMT, the Department for International Trade, Bank of England (BoE), Financial Conduct Authority (FCA), and the 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 countries participated in this discussion.

a. The sustainable finance Roundtable examined the implementation challenges faced by corporates in meeting their net zero targets, and how the financial industry could help to address these challenges.

b. The FinTech Roundtable discussed the opportunities and challenges faced by FinTech firms, and how these firms could better access overseas markets, including by partnering with financial institutions.

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About the Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors and financial market infrastructures. It is also responsible for well-functioning financial markets, sound 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, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth.

The department is responsible for:

• public spending: including departmental spending, public sector pay and pension, annually managed expenditure (AME) and welfare policy, and capital investment
• financial services policy: including banking and financial services regulation, financial stability, and ensuring competitiveness in the City
• strategic oversight of the UK tax system: including direct, indirect, business, property, personal tax, and corporation tax
• the delivery of infrastructure projects across the public sector and facilitating private sector investment into UK infrastructure
• ensuring the economy is growing sustainably

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[1] The FinTech Bridge provides a structured engagement that will aid the development of policy actions, enhance assessments of emerging issues, such as the development of distributed ledger technologies and data sharing, and support trade and investment flows between our respective markets.