ASIC, SFC enter into fintech cooperation to support and understand the financial innovation

The Australian Securities and Investments Commission (ASIC) announced that it has entered into a seal agreement on fintech cooperation with the Hong Kong Securities and Futures Commission (SFC) in a move to support and understand the financial innovation in both the economies.

Under this Cooperation Agreement, close ties between ASIC and the SFC is tightened along with much broader Australia-Hong Kong trade and investment relationship.

The agreement will also offer a framework for information sharing between the regulators. This framework will help ASIC to keep abreast of regulatory and relevant economic or commercial developments in Hong Kong and to use this to inform Australia's regulatory approach.

“Financial services are a major contributor to Hong Kong's US$316 billion economy. The Cooperation Agreement is a significant boost for Australia's burgeoning fintech sector and will ease entry into this important market for innovative Australian businesses,” Cathie Armour, ASIC Commissioner said, signing the agreement.

The agreement will also enable both the parties to refer innovative fintech businesses to each other for advice and support with the help of ASIC's Innovation Hub and its Hong Kong equivalent, the SFC's Fintech Contact Point. This will ease fintechs in both the nations to establish and engage with each other.

Both the ASIC's Innovation Hub as well as SFC's Fintech Contact Point provides assistance to fintech businesses in terms of innovation for better understanding the regulatory regimes in both jurisdictions.

This marks as fourth fintech referral agreement for ASIC following agreements with the United Kingdom, Singapore and Ontario.