The Financial Services Agency of Japan and the Financial Conduct Authority in the U.K. have exchanged letters for a cooperation framework to support innovative fintech companies in each country, according to a press release.

The exchange of letters will provide a regulatory referral system for "innovator businesses" from Japan and the U.K. seeking to enter each other's markets, according to the announcement.

The authority receiving an innovator business referral will provide support for the business by reducing regulatory uncertainty and time to market. Additionally regulators will be encouraged to share information about financial services innovation in their respective markets, reduce barriers to entry in a new jurisdiction and further encourage innovation in both countries.

"We are committed to encouraging innovation that has the potential to be of benefit to consumers using financial services here in the U.K.," Christopher Woolard, FCA executive director of strategy and competition, said in a statement. "Today's exchange of letters with the JFSA will help break down barriers to entry both in Japan and in the U.K. for firms with interesting new business services and products."