The Australian Securities and Investments Commission (ASIC) has signed an agreement with the US Commodity Futures Trading Commission (CFTC) to boost cooperation and understanding of the regulatory impact of emerging financial technologies.
The agreement commits the two organisations to enhancing mutual understanding, identifying market developments and facilitating innovation with respect to financial technology (‘fintech’). The agreement also covers “the use of technology for more effective and efficient regulation and oversight of financial markets and participants” (‘regtech’).
Under the terms of the agreement, the parties have established a framework for cooperation that centres on “information sharing, referrals, and learning from events, proofs of concept, trials, or innovation competitions”.
ASIC’s Innovation Hub and the CFTC equivalent, LabCFTC, will both seek to support “innovator businesses” including referring them to the relevant regulator when they seek to operate in their jurisdiction.
“We are delighted to partner with our colleagues at the CFTC to help encourage fintech and regtech innovation in both Australia and the United States,” said ASIC chair James Shipton.
“Technological changes are continuing to reshape financial services, markets and the regulatory landscape. Today’s arrangement assists innovative businesses to grow across borders and allows for greater information sharing and cooperation by the two regulators.”
“This arrangement will encourage the development of emerging financial and compliance technologies and continue to enhance global awareness of the critical role of regulators in 21st century digital markets,” said CFTC chairperson J. Christopher Giancarlo.
ASIC announced today that it had also signed an agreement to “share information about innovations in financial services" with Luxembourg Commission de Surveillance du Secteur Financier (CSSF).
“Fostering our cooperation with ASIC makes sense to us. Australia and Luxembourg are both strongly innovation-oriented jurisdictions, and we do think that such agreement will enhance our ability to adapt ourselves to the upcoming fintech challenges,” said CSSF CEO Claude Marx.
“We look forward to sharing views and experiences with our colleagues from the ASIC.”
Last month Australia’s RegTech Association (RTA) appointed its inaugural chief executive. Former general manager Deborah Young was appointed CEO of the association.