UK and US authorities sign landmark FinTech pact

The UK's Financial Conduct Authority (FCA) has signed a collaborative arrangement to support FinTech innovation with the US Commodity Futures Trading Commission (CFTC)

The UK's Financial Conduct Authority (FCA) has signed a collaborative arrangement to support FinTech innovation with the US Commodity Futures Trading Commission (CFTC). 

The Cooperation Arrangement on Financial Technology Innovation (FinTech Arrangement) entails information-sharing on FinTech market trends and developments, and also facilitates referrals of UK firms looking to enter the US market and vice versa. 

The two authorities will also share insight derived from their respective 'sandboxes', proof of concept, and innovation competitions. 

FCA Innovate was launched in 2014 while its US counterpart LabCFTC was created in May last year.

FCA chief executive Andrew Bailey said: "As our first agreement of this kind with a US regulator, we look forward to working with LabCFTC in assisting firms, both here in the UK and in the US, who want to scale and expand internationally in our respective markets. As part of the Arrangement, the FCA and the CFTC will be hosting a joint event in London to demonstrate how firms can engage with both regulators."

The FCA’s Innovation Hub has supported over 500 businesses and the authorization of 43 businesses. LabCFTC has engaged with over 150 entities since its launch last year, published its first primer on the topic of virtual currencies, and soon will seek public feedback on a planned 2018 innovation competition.

CFTC chairman Christopher Giancarlo said: 'The FCA’s Project Innovate is the gold standard for thoughtful regulatory engagement with emerging technological innovation.

'We believe that by collaborating with the best-in-class FCA FinTech team, the CFTC can contribute to the growing awareness of the critical role of regulators in 21st century digital markets.'