As noted in last week's Department of Treasury announcement, the connectivity between the U.S. and UK will be vital from an economic growth perspective as well as addressing regulation and technology issues.
The two countries serve as important partners, topping each other's respective trade activities rankings in a variety of categories including import, export and foreign direct investment. It makes sense that emerging compliance and technology initiatives should mirror and compliment each other as well.
- Regulatory Engagement: Dialogue between authorities and with the private sector is critical to identify and address potential regulatory synergies, share lessons and develop closer working relationships. The United States and United Kingdom will build on existing regulatory cooperation by discussing regulatory developments and sharing experiences on technical issues related to innovation in financial services.
- Commercial Engagement: The FIP also seeks to promote a dynamic private sector that supports entrepreneurs and new business models – a necessary driver of financial innovation. It will provide enhanced and regular opportunities for the private sector in one country to engage with industry associations, and market participants in the other country. Through the FIP, the UK Department for International Trade (DIT) will bring UK firms to the United States and the U.S. Commerce Department will coordinate trade promotion missions to the United Kingdom.
Collaboration between the United States and the United Kingdom on financial services was boosted today by the establishment of a Financial Innovation Partnership. The Partnership between the U.S. Department of the Treasury and the UK’s HM Treasury will build on and deepen bilateral engagement on emerging trends in financial services innovation. This will include encouraging collaboration in the private sector, sharing information and expertise about regulatory practices, and promoting growth and innovation. “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,” said Heath Tarbert, Acting Under Secretary for International Affairs at the U.S. Department of the Treasury.