The Financial Markets Authority (FMA) in New Zealand and the Australian Securities and Investments Commission (ASIC) have re-affirmed their collaboration on the expanding opportunities in Fintech innovation. The two agencies originally entered into a Memorandum of Understanding (MOU) back in 2012. Since that time, much has changed.
Senior executives from both regulators met in in Sydney today to discuss opportunities and challenges of fostering innovation in the Fintech industry, while protecting consumers and managing risks. The two regulators committed to support innovative businesses hoping to make ventures into each other’s markets.
John Price, ASIC Commissioner, said they were pleased to further develop the relationship with the FMA emphasizing their desire to work with FIntechs that want to operate in both jurisdictions.
Garth Stanish, FMA Director of Capital Markets, stated;
“ASIC and the FMA have a strong relationship in all the areas we regulate. Our mutual commitment to innovation and Fintech is no different. We’ll continue to share information and views on the regulatory issues arising from emerging technology and increasing innovation.”
The FMA wants to facilitate financial innovation while creating a regulatory regime that remains relevant and agile. The FMA established an Innovation Strategy Group (ISG) in early 2017 to monitor emerging trends in Fintech and innovation. The ISG also ensures a consistent, coordinated FMA approach to engaging with market participants and across government.
ASIC is focused on the vital role that Fintechs are playing in improving financial services and capital markets. In addition to developing guidance about how these new developments fit into our regulatory framework, in 2015, ASIC launched its Innovation Hub to help Fintechs navigate the regulatory framework without compromising investor and financial consumer trust and confidence.
ASIC added that it collaborates closely with other regulators to understand developments, and to help entrepreneurs expand their target markets into other jurisdictions.
To date, ASIC has inked Fintech referral and information-sharing agreements with the Monetary Authority of Singapore, the United Kingdom’s Financial Conduct Authority, Ontario Securities Commission, Hong Kong Securities and Futures Commission, the Japan Financial Services Agency, Malaysia Securities Commission and Abu Dhabi Global Market Financial Services Regulatory Authority. In addition, information-sharing agreements have been entered with the Capital Markets Authority, Kenya and Otoritas Jasa Keuangan, Indonesia.
