Hong Kong’s Securities and Futures Commission (SFC) and the UK’s Financial Conduct Authority (FCA) have inked a memorandum of understanding (MoU) to improve cooperation in the supervision of cross-border regulated entities.
Under the agreement, the two watchdogs will share regulatory information with to facilitate better oversight of financial market participants as well as other entities regulated by the SFC or the FCA.
“The MoU, which covers financial market participants and other entities that are regulated by the SFC or the FCA, enables the SFC and the FCA to cooperate with each other in the interest of fulfilling their respective regulatory mandates,” SFC said in a statement.
The regulators said the pact will not create legally binding obligations or replace existing regulations, and will also not limit their ability to ability to act unilaterally.
The agreement will be reviewed periodically to test its effectiveness and could be amended if required, the regulators said.
The latest agreement comes shortly after the two regulatory bodies signed a pact to strengthen collaboration in the fintech space.