The 2nd Financial Regulatory Forum (FRF) and the 5th Financial Dialogue (FD) between Japan and the UK was held on 27 November 2023 and a joint statement summarised the key discussion points. Overall, both countries hope for a continued close bilateral economic relationship between Japan and the UK, building on the Japan-UK Comprehensive Economic Partnership Agreement signed in 2020 and enhancing the Hiroshima Accord.
The key areas of discussion were in the areas of:
- Macroeconomy and digital currency, namely sharing information on developments in the areas of Central Bank Digital Currencies (CBDC), cryptoassets and stablecoin. The cross-border nature of cryptoasset markets was discussed with both jurisdictions agreeing to work towards implementing IOSCO and FSB recommendations in a globally consistent and effective manner.
- Transformation of the global landscape, particularly multilateral and bilateral collaboration on global challenges such as supply chain resilience, diversifying the supply chain of clean energy products, strengthening international financial architecture and improving the implementation of the Common Framework. Bilateral creditors were invited to take part in the Debt Data Sharing Exercise and both sides welcomed the progress on rolling out the Climate Resilient Debt Clauses (CRDCs) and the swift implementation of the two-pillar international tax package.
- Financial regulatory issues, including innovation and developments in their respective FinTech markets, sustainable finance and support for the International Sustainability Standards Board’s final standards. The countries noted the importance of domestic and international action to address financial stability risks, including from open-ended funds, margin calls, and non-bank leverage.