The subjects of global investment, diversification and access to overseas markets are front and centre for investors and financial markets. For many years the UK has been one of the leading countries in financial services and the enhancement of global investment opportunities. Moreover, as individual countries and the broader APAC financial service sectors continue to grow, we have seen the enhancement of relations with the UK.
Areas of interest
When looking at global investment, it is essential to have unfettered access to international markets which operate within a similar regulatory framework. We then have the subject of business sustainability, reporting, safe custody, and clearing services. These issues together create an environment of trust between markets and investors. Until now, traditional global investment strategies often involved limited access to international markets. However, this is changing!
Singapore and the UK
While the Singapore and UK authorities have been working together for some time, they recently announced further collaboration. This is the perfect mix, an established leading financial sector in the UK working with an up-and-coming, innovative and fast-expanding market in Singapore. Many experts believe the relationship will be extended further in due course, but currently includes working together on:-
• FinTech
• Business sustainability
• Crypto assets
• Regulations
In an exciting development, Singapore and the UK will be working on a "FinTech Bridge", encouraging Singapore and UK FinTech companies to work together. The creation of investment opportunities should fulfil a growing appetite amongst those seeking a global investment strategy.
Thailand and the UK
The blossoming relationship between Thailand and the UK was further enhanced in November 2022, expanding an arrangement signed earlier this year. While this arrangement takes on more than just financial services, there is a specific focus on the sector. Issues covered are wide-ranging, including:-
• Accounting standards
• Sustainable finance
• FinTech
• Regulations
• Innovation
• Regulatory disclosures
While the Thailand financial service industry is nowhere near as developed as Singapore, it has shown significant growth in recent years. If we strip away the various elements of the arrangement with the UK authorities, it all comes down to trust. Trust in accountancy standards, regulations and regulatory disclosures. These are critical to international investors, especially those with a global investment strategy looking at worldwide diversification.
Japan and the UK
While discussions between Japan and the UK concerning financial services have been ongoing since 2020, they were disrupted by the Covid pandemic. In 2022, the annual dialogue recommenced amid discussions in several areas. These include:-
• Overseas firms participating in both markets
• Asset management and global investment strategies
• Insurance and reinsurance
• FinTech and innovation
• Sustainable finance
• Anti-money-laundering
• Digital services
There is the potential for significant collaboration between Japan and the UK in many areas. While taking in new topics such as FinTech and digital services, there will also be a focus on regulatory frameworks and money laundering.
True global investment
While we have covered Thailand, Singapore and Japan above, many other APAC countries are looking to extend and expand their international presence. For example, the UK has one of the largest financial services sectors in the world and has experience in a whole range of different areas, such as regulation. Working together will allow investors to implement a deep-seated, genuine global investment strategy along with the appropriate diversification and regulatory protection.