The United Kingdom and Singapore held the 10th UK-Singapore Financial Dialogue in London, reaffirming their commitment to cooperation across digital finance, sustainable finance, capital markets, and international regulation.

Advancing AI, Tokenisation and Cross-Border Digital Finance

Officials reviewed progress in digital finance, particularly under Project Guardian, and agreed to deepen collaboration on asset tokenisation by working with the Investment Association and the Investment Management Association of Singapore to better understand investor perspectives and support adoption in both markets.

The UK shared its experience with joining the Global Layer One initiative, while Singapore provided an update on the project’s progress and areas of focus.

Discussions on artificial intelligence covered emerging use cases, regulatory approaches, and cross-border challenges.

MAS and the FCA committed to joint efforts to promote AI adoption, beginning with the FCA-MAS AI Innovation Showcase in London on 3 July, which kicks off a broader programme to highlight innovative solutions from both countries.

Strengthening Sustainable Finance and ESG Reporting Frameworks

On sustainable finance, Singapore shared updates on the adoption of the Singapore-Asia Taxonomy and its alignment with international efforts, while the UK outlined its work under the Transition Finance Council and the Prudential Regulation Authority’s proposed climate risk guidance.

Both sides discussed the development of high-integrity voluntary carbon markets, including Singapore’s transition credit initiatives and the UK’s consultation on a governance framework for carbon credits.

They also addressed sustainability disclosures, with both countries supporting a phased and proportionate approach to adopting International Sustainability Standards Board frameworks.

The UK provided updates on its Sustainability Disclosure Requirements, investor labelling regime, and efforts to develop a future regulatory framework for ESG rating providers.

Capital Market Reforms and Global Regulatory Priorities

In capital markets, the UK outlined recent pension reforms and its plan to adopt a T+1 settlement cycle by 2027. MAS shared updates from its Equities Market Review, including measures to deepen liquidity, attract quality listings, and strengthen the broader ecosystem.

Both countries exchanged views on global regulatory priorities, including developments at the Financial Stability Board.

The UK reaffirmed its commitment to implementing the Basel III standards, while Singapore shared lessons from its own implementation, which took effect in January 2025.

Both sides highlighted the importance of strong prudential standards and supported the implementation of the FSB’s leverage recommendations to address risks in non-bank financial intermediation.

The session concluded with both countries agreeing to continue engagement through a series of roadmap discussions ahead of the next Dialogue in Singapore in 2026.

An industry-led UK-Singapore business roundtable was held the following day, bringing together participants from both markets for a discussion that included reflections on the Dialogue and a session on AI.

Representatives from HM Treasury, MAS, the Bank of England, the FCA, and both high commissions took part in the Dialogue, which was preceded by a bilateral meeting between HM Treasury’s Director General (Financial Services), Gwyneth Nurse, and MAS Deputy Managing Director (Markets and Development), Leong Sing Chiong.

Featured image: Edited by Fintech News Singapore, based on images by leoaltman and leoaltman via Freepik