The Financial Services Agency of Japan (JFSA) and the UK’s Financial Conduct Authority (FCA) have signed an agreement to expand cooperation on fintech.

Under the agreement, the regulators will refer to each other’s innovator businesses that would like to operate in the other authority’s jurisdiction.

Upon a referral being received, the regulators will help fintech firms to understand regulatory requirements, minimise regulatory uncertainty and the time-to-market.

The two regulators also committed to share information about emerging fintech trends and regulatory issues pertaining to innovation.

JFSA vice commissioner for international affairs Shunsuke Shirakawa said: “This is our first case in creating a pro-FinTech Co-operation Framework with any other countries. We believe that this Exchange of Letters strengthens the relationship between the JFSA and the FCA and promotes innovation in our respective markets.”

FCA executive director of strategy and competition Christopher Woolard said: “Today’s Exchange of Letters with the JFSA will help break down barriers to entry both in Japan and in the UK for firms with interesting new business services and products.”