On 8 May 2025, during the Caixin Media’s London Atlantic Dialogue, the United Kingdom Financial Conduct Authority (UK FCA) and the People’s Republic of China took a significant step towards regulatory convergence by unveiling a new legal architecture for cross-border financial cooperation. In a speech delivered by UK FCA Chair Ashley Alder, both jurisdictions signalled their strategic intent to strengthen bilateral ties through a forthcoming Memorandum of Understanding with China’s National Financial Regulatory Administration, the development of a China-UK Wealth Connect platform, and coordinated action on green finance disclosures aligned with the International Sustainability Standards Board (ISSB). Set against the backdrop of increasing global regulatory fragmentation and demographic-driven pension reform, it is a decisive pivot towards legally structured, trust-based financial integration between two of the world’s most systemically important economies.
Legal Instruments and Cross-Border Supervision
In a landmark announcement, the UK FCA confirmed that it is negotiating a Memorandum of Understanding (MoU) with China’s National Financial Regulatory Administration, which will establish legal channels for supervisory collaboration, secure cross-border information sharing, and enforceable compliance cooperation. This MoU is designed to enable effective oversight of UK- and China-based financial institutions operating across both jurisdictions, in line with domestic legal protections on data localisation and market conduct.
Wealth Connect and Pension Market Access
Alder also unveiled plans for a proposed China-UK Wealth Connect scheme – a regulatory gateway that would allow Chinese retail investors to access UK-managed funds under FCA supervision, and simultaneously open the Chinese market to UK-based wealth managers. The initiative aligns with both jurisdictions’ need to address demographic pressures through deeper pension reform, long-term savings strategies, and regulated cross-border financial advice.
Sustainable Finance: ISSB Alignment and Market Trust
Reiterating the UK FCA’s commitment to International Sustainability Standards Board (ISSB) disclosures, Alder welcomed China’s alignment efforts, including the participation of the Bank of China in the Taskforce on Nature-related Financial Disclosures (TNFD). The address highlighted the legal importance of standardised climate and nature-based reporting, calling shared disclosure frameworks “essential to market integrity and investor confidence.”
China’s recent listing of a foreign-issued sovereign green bond on the London Stock Exchange was acknowledged as a milestone in capital market integration and a demonstration of mutual legal confidence in ESG-related instruments.
Capital Markets Access and Secondary Listings
UK FCA also cited ongoing developments under the Stock Connect Programme, including a sharp rise in Chinese secondary listings and ETF issuances in London, as proof of market confidence in the UK’s reformed listing and prospectus regimes. The FCA has pledged further support to resolve technical issues impeding full capital flow interoperability, in collaboration with HM Treasury, the London Stock Exchange, and Chinese counterparts.
Multilateralism and Regulatory Diplomacy
While reaffirming bilateral collaboration, the UK FCA reiterated its position that enduring regulatory trust must be built through multilateral legal platforms, including the Financial Stability Board (FSB) and the International Organisation of Securities Commissions (IOSCO). Alder urged China to remain a proactive participant in these global standard-setting bodies, describing them as the fora where “the rules of modern finance are shaped.”
The UK FCA’s renewed regulatory engagement with China marks a legally significant and strategically timed recalibration of global financial ties. By embedding cross-border supervision, sustainable finance alignment, and wealth market access within a formal legal framework, both jurisdictions are reinforcing trust, market integrity, and long-term economic resilience. As geopolitical headwinds intensify, this partnership affirms that structured regulatory cooperation remains the most credible path to financial stability and global relevance.
(Source: https://www.fca.org.uk/news/speeches/strengthening-uk-china-financial-partnership)
