Event: Japan Weeks 2025, opening
reception
Delivered: 20 October 2025
Note: this is the speech as
drafted and may differ from the delivered version
Key points
- Investability comes from the strength of
longstanding global centres and predictability
that allows consumers to make informed decisions.
- London and Tokyo have a shared commitment to
and responsibility for financial excellence,
innovation and global leadership – and there is
enormous potential to strengthen the links
between our markets.
- Our newly established Asia-Pacific office
will foster greater collaboration, aligned
standards and shared growth, and we encourage
businesses to engage directly with us.
While most people might expect Japan and the UK
to be quite different, I have found that we have
quite a bit in common.
Our countries share a love of timeliness,
preparedness, queueing – and, apparently,
Paddington Bear.
The UK has loved seeing His Excellency Hiroshi
Suzuki, Japanese Ambassador to the UK, bringing
Paddington everywhere from London to Nagoya – via
Shinkansen, no less.
These are recent links.
The relationship between the UK and Japan spans
centuries.
In 1858, we signed the Treaty of Amity and
Commerce. I find that name fitting, as the spirit
of friendship has endured.
In the nineties, both countries held festivals
showcasing the other's culture.
And during a recent visit to Japan, the Duchess
of Edinburgh and Crown Princess Akishino planted
an English
oak tree at the State Guest House – one
grown from a tree planted by Queen Elizabeth II
in 1975.
But the spirit of commerce has continued, too.
It still underpins our relationship.
In 2021, the UK-Japan Comprehensive Economic
Partnership Agreement marked the
UK's first
major trade deal as an independent
trading nation.
Today, Japan is one of the UK's top investors,
and trade between our countries has
reached £31
billion.
We welcome Japanese investment and participation
in the UK's global financial services centre, and
honour the exceptional contributions made by
Japanese firms throughout history.
I believe we have the potential to become even
greater partners, and the UK is committed to
fostering our relationship.
To instil in it chowa –
what Hideaki Omiya described as ‘a spirit of
harmonious partnership' – by enhancing our
financial cooperation across regulation,
innovation and investment.
Deepening the UK-Japan
relationship
Before signing the Treaty of Amity and
Commerce, Queen
Victoria gifted the Japanese Emperor a ship
called HMY Emperor as a token of friendship.
This year, the UK Navy visited Tokyo in one of
its most powerful ships: the HMS Prince of
Wales.
It covers hundreds of miles a day, conducts
strike missions and deploys troops. But it also
fosters our international relationships – just
like the HMY Emperor did.
I grew up in a ship-building town and know the
quiet power a ship carries.
In many instances, it is a first line of
security.
But in today's world, conflict is no longer just
physical. It's economic and technological – which
means our security must be, as well.
One-third
of Japanese firms have experienced a
cyberattack. And over a
quarter of UK businesses have been hit
by one in the past year.
These attacks are devastating, even for large
businesses like Asahi Group and Marks &
Spencer.
Asahi saw falling
share prices, product
launch delays and near-empty shelves.
Marks
& Spencer went without contactless
payments, inventory systems and online shopping.
These threats are real. But when we signed
the Hiroshima
Accord, our countries promised to ‘stand
shoulder to shoulder' – and we remain each
other's closest
security partners.
So, we will guard against threats together. With
amity and commerce.
We will tackle global challenges through
investment, within nations and between friends.
Because finance is part of national security.
And sound security is what underpins market
integrity, and therefore growth and
competitiveness.
Our countries are already working on this
together.
- The Sumitomo Corporation has partnered with
the UK government to invest
£7.5 billion into offshore wind and
hydrogen projects.
- With the recent Program
for Promotion of Foreign Direct Investment in
Japan, the UK will increase investment into
key growth sectors.
- As part of Project Guardian, we are working
together alongside the Swiss Financial Market
Supervisory Authority (FINMA) and the Authority
of Singapore (MAS) to explore tokenisation and
decentralised finance.
It comes at an especially opportune moment for
the FCA as we prepare to design the next stage
for asset management.
Tokenisation could play a pivotal role – and
drive changes that benefit both industry and
consumers.
As home to 2 of the world's leading financial
markets, our countries have plenty to offer each
other.
Japan leads in manufacturing and green
technologies, and has a deep pool of capital. Its
sense of stability is also a huge appeal to UK
investors.
The UK has the size, scale and stability of its
markets, plus proven performance and a diverse
investor base. We also offer a stable and
well-established legal environment and a strong
record of innovation.
Leading markets with global
commitments
We were pleased to hear of the Japan Financial
Services Agency's (JFSA) goals at this year's
UK-Japan Financial Regulatory Forum.
Many of the initiatives shared in the plan for
Promoting Japan as a Leading Asset Management
Center resonate strongly with the FCA's
objectives.
- Ensuring open, competitive markets.
- Reducing unnecessary barriers to entry.
- Fostering greater international alignment.
These are critical for Japan's asset management
market, which is worth $4.9
trillion and set to reach $9.6 trillion
by 2030.
But they're also critical to our partnership.
They allow UK firms to operate with confidence in
Japan and support Japanese firms accessing the UK
market.
Transparency and simpler access frameworks
strengthen trust and underpin sustainable
cross-border capital flows – priorities at the
heart of our growth and competitiveness mandate.
And they make clear that our countries share a
commitment to open, high-standard markets and
engagement with international standard setters
like the International Organization of Securities
Commissions (IOSCO).
Looking ahead
I'd like to recognise and commend the JFSA for
its work in positioning Japan as a global asset
management hub.
The reforms on corporate governance and asset
ownership have led to a high-performing equity
market and considerable innovation in recent
years, making Japan attractive to domestic and
international managers alike.
Moreover, allowing managers
of all sizes to delegate their
investment decisions will provide them access to
the best opportunities worldwide.
These plans are already attracting global
attention, and I suspect they will continue to do
so.
They are also strongly aligned with the UK's own
reform agenda.
As the JFSA builds upon its vision and the FCA
works to embed growth and competitiveness into
regulation, we find ourselves with an
opportunity. To collaborate and strengthen the
links between our markets.
How do we ensure that asset management benefits
both countries, particularly given the challenges
like demographic shifts, limited financial
literacy, overexposure of foreign assets, and
making savings more productive?
By:
- Working together to facilitate market
understanding.
- Deepening regulatory cooperation.
- Aligning policy frameworks.
- Supporting innovation while protecting
stability and facilitating capital flows and
co-investment.
As the world's second-largest international asset
management centre, with £14 trillion AUM, the UK
is here to support you as you build your asset
management centre.
When we developed our own, we found that a
commitment to global standards and an openness to
international competition were especially
helpful.
We also welcome Japanese capital in
infrastructure, sustainable finance and private
markets.
And we are eager to continue building upon the
transfer of knowledge we're already seeing.
For example, discussions with the JFSA helped
shape our approach to creating a crypto regime
and stablecoin rulebook.
And the Nippon individual savings account (NISA)
was modelled on the UK's individual saving
account.
With raised contribution limits, greater tax
benefits and simpler procedures, investments have
increased by 68% since 2023.
Of course, there are other ways in which we can
help each other, especially in terms of
sustainable finance.
Working together and adopting international
sustainability standards will help us mitigate
the unique sustainability challenges and threat
of natural disaster we face as island nations.
When the FCA developed a Code of Conduct for
sustainability data and ratings providers, we
received valuable input from the JFSA and IOSCO
to encourage international consistency.
It's exciting to consider what might be possible
when we continue learning from each other, even
in a time of change.
With this in mind, I would like to extend my
sincere thanks to Shigeru Ariizumi for his
partnership and guidance as he moves onto his new
role.
I look forward to welcoming my new counterpart.
Conclusion
I'd like to leave you with this: investability
comes from 2 things.
- The strength of longstanding global centres
like London and Tokyo.
- A sense of predictability, which empowers
customers to make better and more informed
decisions.
That is how we will create a ‘virtuous
cycle of growth and distribution,' both in
Japan and in the UK.
I look forward to deepening our countries'
cooperation and having regular exchanges between
regulators and industry as we work to make this
vision a reality.
Of course, we realise our presence plays a role
in this.
We have established our Asia-Pacific office to
provide you with greater access to us and our
services.
I encourage all of you to engage with us
directly.
Let's continue to build our partnership, align
our standards, and create shared growth across
our markets – together.
Because, like an English
oak tree's, our countries' roots are deeply
entwined, highly adaptable, and strong enough to
withstand the test of time.
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