The Financial Conduct Authority (FCA) has voiced its support for proposals that would build cross-border systems in the wealth management space that seek to benefit the economies of the UK and China.

In a speech titled ‘Strengthening the UK-China financial partnership’ at Caixin Media's London Atlantic Dialogue event, FCA chair, Ashley Alder, said the UK-China financial relationship could act as a “stabilising force”.

He stated that the countries needed to build systems that would benefit both economies across areas including wealth management, green finance, and supervision.

“For us to work together – across areas as diverse as green finance, wealth management, and supervision – we need to build systems that are not only resilient in the face of today’s risks, but are also able to engage with tomorrow’s realities,” Alder said.

He pointed to China’s growing pool of private wealth, with Chinese consumers looking to diversify their investment abroad to boost returns and secure retirement funds, which Alder believed the UK markets were perfectly placed to support.

Alder argued the potential UK-China Wealth Connect scheme, which was proposed by the UK and Chinese governments in January, could be a transformational next step that would provide a seamless platform for cross-border wealth management.

It would enable Chinese savers to access UK-managed funds through regulatory frameworks and give UK firms a ‘gateway’ to the growing pool of global private capital.

“To ensure success, it must be designed with openness, strong governance, and mutual benefit at its core, and the FCA is working with our UK and Chinese counterparts to help shape this opportunity,” Alder stated.

“Because if we can build the right structures now, the benefits for both our economies will be lasting and significant.

“I’m pleased with the progress made under January’s Economic and Financial Dialogue (EFD), where both sides underlined the importance of data-sharing, and we will now work together with Chinese regulators to put this high-level commitment into practice.

“The UK and China, although very different economic systems, share similar challenges, including the longer-term demographic challenge.

“The EFD has set out a work programme that is already re-energising our relationship. The progress we’ve made so far, through dialogue and agreement, gives me confidence that we have the skill and the will to reach those new heights.”

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