Philippa Allen: FCA’s APAC Office is About «Staying Relevant»
UK’s financial regulator recently established an APAC presence with a new office in Australia. IQ-EQ managing director Philippa Allen told finews.asia that this move is about staying relevant in a region that is becoming increasingly critical for global finance.
In April, UK’s Financial Conduct Authority (FCA) announced that it would establish a presence in Asia Pacific via a regional office in Australia headed by director Camille Blackburn. In the role, Blackburn would focus on supporting financial services firms to navigate regulations to enter the UK market or raise capital and provide UK firms with support expanding into APAC.
«The FCA’s move to establish a presence in Asia reflects a growing recognition among regulators of the need to engage more globally,» Philippa Allen, managing director, regulatory compliance, Asia at global investor services firm IQ-EQ, told finews.asia.
«While agencies like MAS and the SEC have long operated overseas offices, the FCA’s entry reflects a growing awareness that regulatory influence must follow capital. And increasingly, that capital is flowing into and through Asia.»
FDI Leader
According to World Bank data, two out of the three leading recipients of foreign direct investments in 2023 were in Asia with the US' $349 billion at the top followed by Singapore at $175 billion and Hong Kong at $122 billion.
«This isn’t just about enforcement. It’s about access, visibility, and staying relevant in a region that’s becoming central to global investment strategies,» Allen explained. «With Australian superannuation funds accelerating their offshore allocations, and Asia emerging as a key destination and conduit for institutional capital, the FCA’s presence signals a recognition that regulatory frameworks must evolve in tandem with market realities.»
Strong Bilateral Relationships
In a document detailing its five-year strategy, the FCA underlined «strong bilateral relationships» with counterparts as a key to furthering the UK’s ambitions as an international financial center, adding that the current environment may necessitate more linkages with aligned partners. In addition to Asia, the British watchdog also established a presence in the US for the first time, led by Tash Miah in Washington.
«While we will continue to advocate for global cooperation and openness, we acknowledge this may be an increasingly harder argument to make in an era of heightened geopolitical instability and global competition,» FCA’s document said.
«We may, therefore, choose to make progress on some issues with a smaller group of like-minded jurisdictions. And we will face difficult choices if the standards set in global agreements and through multilateral bodies are not comprehensively implemented across the world.»
Non-Dom Headwinds
Meanwhile, London is also facing its own challenges at home as changes to tax rules for non-UK domiciled individuals is driving some outflows as the wealthy seek friendlier jurisdictions. According to Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, Switzerland, Monaco, Italy and the Middle East have all been beneficiaries.
«The FCA’s arrival in Asia is a clear indication that the UK intends to remain part of the global financial conversation, not just from London, but on the ground where the action is,» Allen added.
