London, 27 July 2023… The UK (UK) and Singapore held the eighth UK-Singapore Monetary Dialogue in London yesterday. The Dialogue facilitated a helpful alternate of views, and recognized alternatives for additional collaboration on joint initiatives, in precedence areas equivalent to sustainable finance and FinTech and innovation.
Sustainable Finance
Each nations agreed on the pressing have to develop approaches that facilitate and scale financing to assist the transition of economies to internet zero.
A. Transition Finance:
The UK and Singapore agreed that globally comparable and clear transition plans that embrace credible forward-looking info may help scale back fragmentation, scale transition finance, and assist sustainability in finance extra usually. Each nations recognised the worth of elevated cooperation on transition plans to mobilise actual financial system emission reductions. The Financial Authority of Singapore (MAS) offered updates on Singapore’s concentrate on scaling blended finance and addressing power transition wants in Asia, MAS’ Finance for Web Zero Motion Plan (FiNZ Motion Plan) and initiatives to mobilise inexperienced and transition financing to catalyse Asia’s internet zero transition. The UK offered updates on the Transition Plan Taskforce’s (TPT) work to finalise its disclosure framework and the TPT’s worldwide engagement with governments and regulators on the worldwide applicability of the framework alongside the Worldwide Sustainability Requirements Board’s (ISSB) remaining requirements.
B. Worldwide requirements:
The UK and Singapore re-affirmed their continued assist for a worldwide framework of sustainability disclosures based mostly on the ISSB remaining requirements for normal reporting on sustainability and for climate-related disclosures. Each nations are dedicated to implementing globally interoperable sustainability disclosures. Either side additionally welcomed the Worldwide Group of Securities Commissions’ (IOSCO) endorsement of the ISSB’s requirements. It was recognised {that a} international framework for transition and sustainability disclosure requirements is critical to advertise a easy, constant, and efficient regulatory surroundings for corporations, regulators, and monetary authorities. Each the UK and Singapore agreed to assist the ISSB in implementing the requirements and reaching its objective of reaching globally interoperable disclosure requirements by, for instance, supporting capability constructing efforts and sharing experiences. Each nations additionally exchanged views on their respective Environmental, Social, and Governance (ESG) information and rankings codes of conduct which have been revealed for session[1]. The UK and Singapore agreed to discover easy methods to deepen bilateral cooperation and promote international coordination and customary expectations.
C. Nature and Biodiversity:
The UK and Singapore re-affirmed the necessity to deepen the understanding of nature and biodiversity loss and its impression on the monetary sector. Each nations welcomed an upcoming joint analysis challenge on nature-related monetary dangers in Southeast Asia involving the College of Cambridge Institute for Sustainability Management (CISL) and the Singapore Inexperienced Finance Centre, which is co-managed by Imperial Faculty Enterprise Faculty and Singapore Administration College (SMU). The UK shared its efforts to quantify UK’s monetary and financial dangers from publicity to nature degradation via the work by the UK’s Inexperienced Finance Institute with assist of the Financial institution of England (BoE) and Division for Atmosphere, Meals & Rural Affairs (DEFRA). The UK offered an replace on the most recent developments from the Taskforce on Nature-related Monetary Disclosures (TNFD), forward of the ultimate publication of the TNFD framework in September 2023.
FinTech and Innovation
The UK and Singapore exchanged views on the most recent developments on their respective work within the digital house.
A. Crypto and Digital Property:
The UK and Singapore agreed to contribute to efforts to develop international regulatory requirements for crypto and digital belongings as a part of worldwide commonplace setting our bodies equivalent to IOSCO, and dealing teams beneath the Monetary Stability Board (FSB), and welcomed the FSB suggestions on crypto-assets together with stablecoins. The UK offered an replace on its method and {industry} suggestions on the Future Monetary Companies Regulatory Regime for Crypto-assets session[2], and the regulatory guidelines for advertising and marketing crypto-assets[3]. Singapore shared its views on regulatory developments on stablecoins and shopper safety measures for Digital Cost Token Companies[4].
B. Central Financial institution Digital Forex (CBDC):
The UK and Singapore held a productive dialogue on their respective approaches in direction of CBDC, with the UK updating on the “Digital Pound” session and plans for the present design section. Singapore shared its method in direction of exploring use circumstances for a digital Singapore Greenback, and efforts which can be being undertaken to foster interoperability[5]. Singapore additionally offered an replace on its exploration of wholesale CBDC[6] for cross-border international alternate settlement. Each nations will proceed discussions and share insights and experiences.
C. Venture Guardian:
Singapore shared the most recent developments on its private-public sector collaborative initiative to check the potential and feasibility of asset tokenisation. Each nations agreed to contemplate future collaboration alternatives on this space.
D. E-Wallets:
The UK welcomed the end result of MAS’ evaluate of e-wallet caps, together with the rise to the related limits imposed on e-wallets[7].
Cross-border Association for chosen Buying and selling Venues
The UK offered an replace on the cross-border preparations between the UK and Singapore for exchanging info in relation to derivatives buying and selling venues, which issues (i) the UK’s and Singapore’s derivatives buying and selling obligations; and (ii) the classification of regulated markets for the aim of Change Traded Derivatives buying and selling. Each nations acknowledged the worth of continued cooperation to assist the G20 OTC derivatives reforms.
The UK and Singapore renewed their dedication to engagement past the Dialogue via a collection of roadmap engagements. Additional cooperation was agreed on Sustainable Finance and FinTech and Innovation forward of the subsequent Monetary Dialogue because of be held in Singapore in 2024.
An industry-led UK-Singapore enterprise roundtable on sustainable finance passed off on 25 July 2023. Business members mentioned the financing alternatives and challenges in assembly internet zero targets, and the way the monetary {industry} might assist to deal with these.
The Dialogue was collectively chaired by Deputy Managing Director (Markets and Growth) of MAS, Mr Leong Sing Chiong, and Director Basic (Monetary Companies) of HM Treasury (HMT), Ms Gwyneth Nurse. The Dialogue was attended by senior officers from MAS, HMT, BoE, Monetary Conduct Authority, the Excessive Fee of the Republic of Singapore in London, and the British Excessive Fee in Singapore.
In regards to the Financial Authority of Singapore
The Financial Authority of Singapore (MAS) is Singapore’s central financial institution and built-in monetary regulator. As a central financial institution, MAS promotes sustained, non-inflationary financial progress via the conduct of financial coverage and shut macroeconomic surveillance and evaluation. It manages Singapore’s alternate fee, official international reserves, and liquidity within the banking sector. As an built-in monetary supervisor, MAS fosters a sound monetary providers sector via its prudential oversight of all monetary establishments in Singapore – banks, insurers, capital market intermediaries, monetary advisors and monetary market infrastructures. Additionally it is liable for well-functioning monetary markets, sound conduct, and investor schooling. MAS additionally works with the monetary {industry} to advertise Singapore as a dynamic worldwide monetary centre. It facilitates the event of infrastructures, adoption of know-how, and upgrading of abilities within the monetary {industry}.
About HM Treasury
HM Treasury is the UK authorities’s financial and finance ministry, sustaining management over public spending, setting the course of the UK’s financial coverage and dealing to realize robust and sustainable financial progress.
The division is liable for:
- public spending: together with departmental spending, public sector pay and pension, yearly managed expenditure (AME) and welfare coverage, and capital funding;
- monetary providers coverage: together with banking and monetary providers regulation, monetary stability, and guaranteeing competitiveness within the Metropolis;
- strategic oversight of the UK tax system: together with direct, oblique, enterprise, property, private tax, and company tax;
- the supply of infrastructure initiatives throughout the general public sector and facilitating non-public sector funding into UK infrastructure; and
- guaranteeing the financial system is rising sustainably
[1] MAS launched its Consultation Paper on Proposed Code of Conduct for ESG Rating and Data Product Providers on 28 June 2023, and the UK ESG Knowledge and Scores Code of Conduct Working Group (DRWG) revealed the Draft Voluntary Code of Conduct for ESG Ratings and Data Product Providers for session on 5 July 2023.
[2] HM Treasury Consultation and call for evidence published in February 2023
[3] FCA introduces tough new rules for marketing crypto-assets
[4] MAS Publishes Investor Protection Measures for Digital Payment Token Services
[5] MAS proposes standards for digital money
[6] MAS Launches Expanded Initiative to Advance Cross-Border Connectivity in Wholesale CBDCs
[7] MAS Response to Consultation on Proposed Amendments to Restrictions on Personal Payment Accounts that Contain E-Money
