Singapore, 8 Might 2024… The UK (UK) and Singapore held the ninth UK-Singapore Monetary Dialogue in Singapore right now. Each international locations mentioned collaboration alternatives in precedence areas comparable to sustainable finance and FinTech and innovation, and exchanged views on current developments in non-bank monetary intermediation (NBFI) in addition to efforts to enhance cross-border fee connectivity.
Sustainable Finance
2. The UK and Singapore reaffirmed their dedication to scale financing in assist of the web zero agenda.
a. Developments in transition planning: The UK and Singapore reaffirmed that globally comparable and sound transition plans are important for the scaling of transition finance. The UK up to date on the progress of the Transition Plan Taskforce (TPT)’s disclosure framework following its publication in October 2023, and outlined plans for introducing expectations for listed firms’ transition plan disclosures. The Financial Authority of Singapore (MAS) shared its session on Transition Planning Tips in 2023, which set out supervisory expectations for monetary establishments to have a sound transition planning course of, as they construct local weather resilience and handle dangers arising from the worldwide transition to a web zero financial system and the anticipated bodily results of worldwide warming. The UK and Singapore additionally famous the significance of ongoing work at G20, Monetary Stability Board (FSB), Basel Committee’s Job Drive on Local weather-related Monetary Dangers (TFCR), Worldwide Group of Securities Commissions (IOSCO) and Community of Central Banks and Supervisors for Greening the Monetary System (NGFS) on this respect.
b. Disclosure requirements, ESG rankings and information merchandise: The UK and Singapore re-affirmed their dedication to implement the Worldwide Sustainability Requirements Board (ISSB)’s requirements to enhance the consistency, comparability, and reliability of sustainability-related disclosures globally. The UK supplied an replace on its Sustainability Disclosure Necessities and its related labelling regime. The UK and Singapore additionally mentioned the voluntary codes of conduct for ESG rankings and information product suppliers which have been revealed of their respective international locations, noting that each codes had been aligned with IOSCO’s suggestions. Each international locations agreed to contemplate collaboration alternatives because the regulatory panorama evolves, together with by means of IOSCO’s Sustainable Finance Taskforce.
c. Sustainable infrastructure and funding: The UK and Singapore famous the big funding hole for Asia’s inexperienced and transition finance, and agreed that there are alternatives to mobilise personal capital for the web zero transition. Constructing on the September 2023 UK-Singapore Strategic Partnership
FinTech and Innovation
3. The UK and Singapore exchanged views on their respective approaches to handle dangers and seize alternatives within the digital area.
a. Synthetic intelligence (AI): The UK and Singapore mentioned monetary stability dangers, cyber safety dangers, in addition to supervisory issues related to the elevated use of AI within the monetary sector. Each international locations agreed that worldwide requirements had been key to facilitating innovation whereas managing dangers to customers, monetary market stability and integrity, and explored areas for collaboration by means of worldwide fora, comparable to IOSCO and FSB.
b. Cryptoassets: The UK supplied an replace on its last proposals for creating the UK’s monetary providers regulatory regime for cryptoassets, underneath which the federal government will deliver numerous cryptoasset actions, comparable to change, custody, and lending actions, into the regulatory perimeter for the primary time. The UK additionally up to date on its plans to control sure fiat-referenced stablecoins and create the setting for stablecoin issuers and repair suppliers to function and develop within the UK.
c. Central Financial institution Digital Forex (CBDC): The UK shared developments on progress following the publication of the “digital pound” session response paper on 25 January 2024, together with a design part which might be adopted by a call on whether or not to proceed with a retail CBDC. The UK additionally shared their pondering on wholesale funds, together with on infrastructure supporting the settlement of tokenised transactions.
d. Tokenisation and distributed ledger know-how (DLT): The UK and Singapore shared their respective initiatives and initiatives in tokenisation and DLT and agreed on the advantages of asset and fund tokenisation to the monetary ecosystem, from broadened investor entry to funding merchandise to simplifying distribution and buying and selling of such merchandise digitally. As a part of Mission Guardian’s policymaker group, the UK Monetary Conduct Authority (FCA) and MAS, along with the opposite policymakers
Developments within the NBFI Sector and Cross-Border Cost Connectivity
4. The UK supplied an replace on current developments to deal with dangers within the NBFI sector. Each international locations underlined the significance of enhancing authorities’ potential to watch dangers in NBFIs through higher information gathering and sharing. In addition they agreed on the significance of finalising on-going worldwide coverage work on margining practices and NBFI leverage, and to subsequently implement agreed NBFI insurance policies at home stage. The UK and Singapore agreed to proceed their collaboration to deal with vulnerabilities related to NBFIs, together with at IOSCO and the FSB.
5. The UK and Singapore reiterated their dedication to the G20’s Roadmap to Enhancing Cross-Border Funds, together with the FSB’s priorities for this 12 months as specified by its most up-to-date progress report. The BIS Innovation Hub Singapore Centre additionally shared the progress of Mission Nexus
6. The UK and Singapore renewed their dedication to engagement past the Dialogue by means of a collection of roadmap engagements to discover additional cooperation in sustainable finance and FinTech and innovation, forward of the following Monetary Dialogue as a consequence of be held within the UK in 2025.
7. Two industry-led UK-Singapore enterprise roundtables on Transition Planning and Generative AI will happen on 9 Might 2024 with participation by {industry} members from each international locations.
a. The Transition Planning roundtable will look at present regulatory initiatives and subsequent steps for Monetary Establishments and their portfolio firms of their transition to web zero.
b. The Generative AI roundtable will talk about the challenges this know-how poses for regulatory compliance and establish methods to harness the advantages of generative AI whereas fostering innovation and defending customers.
8. The Dialogue was collectively chaired by Deputy Managing Director (Markets and Growth) of MAS, Mr Leong Sing Chiong, and Director Normal (Monetary Providers) of HM Treasury (HMT), Ms Gwyneth Nurse. The Dialogue was attended by senior officers from MAS, HMT, Financial institution of England, FCA, the Excessive Fee of the Republic of Singapore in London, and the British Excessive Fee in Singapore.
***
