Regulators reaffirm commitment to Trans-Tasman fintech

Australia’s chief corporate regulator ASIC has reaffirmed an agreement with its New Zealand counterpart to nurture Trans-Tasman fintech and innovation.

Written on 20 October, 2017
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Australia’s chief corporate regulator ASIC has reaffirmed an agreement with its New Zealand counterpart, the Financial Markets Authority (FMA), to nurture Trans-Tasman fintech and innovation.

The commitment bolsters an existing wide-ranging Memorandum of Understanding (MOU) signed between the regulators in 2012.

This week in Sydney, senior executives from both regulators discussed the opportunities and challenges of balancing the desire to foster innovation and growth in the emerging fintech industry, while protecting consumers and managing risks. Regulators will assist innovative businesses hoping to make ventures into each other’s markets by providing referrals for advice and support.

Garth Stanish, FMA Director of Capital Markets, said, “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.”

John Price, ASIC Commissioner, said, “We’re pleased to further develop our relationship with the FMA and demonstrate our collaborative approach in this space. Across the Tasman we’ll continue to cooperate with the FMA and refer new businesses where they have an appetite to work in both jurisdictions.”

This week the FMA has announced its decision to allow personalised robo-advice services in New Zealand. Providers will need to apply to use an FMA exemption from early 2018. Its Annual Corporate Plan also sets out its areas of focus and key activities under the theme of regulating for rapid technological innovation.

ASIC collaborates closely with other regulators to understand developments, and to help entrepreneurs expand their target markets into other jurisdictions. To date, fintech referral and information-sharing agreements have been entered 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.