UK and Singapore Discuss Green Finance Gaps, Digital Asset Regulation

UK and Singapore Discuss Green Finance Gaps, Digital Asset Regulation

by May 9, 2024

The United Kingdom and Singapore had convened for the 9th UK-Singapore Financial Dialogue yesterday (8 May 2024) to deepen their cooperation in sustainable finance and fintech.

The dialogue focused on various pivotal areas including sustainable finance, fintech innovation, non-bank financial intermediation, and cross-border payment connectivity.

Both nations reaffirmed their commitment to enhancing finance for projects aligned with the net zero agenda, focusing on establishing globally comparable transition plans and enhancing disclosure standards.

They also underscored the significance of continuous efforts by international organisations such as the G20, Financial Stability Board (FSB), Basel Committee’s Task Force on Climate-related Financial Risks (TFCR), International Organization of Securities Commissions (IOSCO), and the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) in these endeavors.

Notably, the UK discussed the progress of its Transition Plan Taskforce’s disclosure framework and upcoming regulatory expectations for listed companies.

Simultaneously, Singapore outlined its supervisory expectations for financial institutions through its Transition Planning Guidelines.

The dialogue also covered the implementation of international sustainability standards to standardise global disclosures, with both countries highlighting their voluntary codes of conduct for ESG ratings and data product providers.

They acknowledged the significant funding gaps for green and transition finance in Asia and discussed mobilising private capital to bridge these gaps.

On the topic of fintech and innovation, the UK and Singapore exchanged insights on managing risks and harnessing opportunities in the digital finance landscape.

Discussions included the regulatory frameworks for artificial intelligence, cryptoassets, and the potential development of a digital pound.

Additionally, as part of Project Guardian’s policymaker group, the UK Financial Conduct Authority (FCA) and MAS, along with other policymakers, are advancing discussions on the regulatory treatment of digital assets, including DLT.

Both countries emphasised the importance of international standards to facilitate innovation while safeguarding financial stability.

The meeting also addressed enhancements in the non-bank financial intermediation sector, emphasising the need for improved data collection and sharing to monitor risks effectively.

Both nations reiterated their commitment to the G20’s roadmap for enhancing cross-border payments, aiming to improve the efficiency and accessibility of these payments.

Looking ahead, the UK and Singapore plan to continue their collaborative efforts in these fields with further engagements scheduled before the next Financial Dialogue in the UK in 2025.

Additionally, industry-led roundtables on transition planning and generative AI are set to occur, which will involve significant participation from industry leaders from both countries.

The dialogue was co-chaired by Leong Sing Chiong, Deputy Managing Director of MAS, and Gwyneth Nurse, Director General of Financial Services at HM Treasury, with participation from senior officials from both nations.