Fintech support agreed with US

The arrangements will provide cooperation and information-sharing

Fintech support agreed with US


By Rebecca Pike

Australian fintech could now benefit from innovation in the United States and Luxembourg after ASIC signed agreements with the countries.

The arrangement with the US Commodity Futures Trading Commission (CFTC) agrees to cooperate and support innovation through each other’s financial technology initiatives: ASIC’s Innovation Hub and CFTC’s LabCFTC.

The agreement with Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) provides a framework for cooperation to understand financial innovation in each jurisdiction. It allows for information sharing between the two regulators on fintech and regulatory technology (regtech).

The Cooperation Arrangement on Financial Technology Innovation with the US focuses on information-sharing regarding fintech market trends and developments.

It also facilitates referrals of fintech companies interested in entering the others’ market, and sharing information and insight derived from each authority’s relevant sandbox, proofs of concept, or innovation competitions.

CFTC chairman J. Christopher Giancarlo, said, “The signing of this arrangement with ASIC advances our mutual interest in facilitating technological innovation and development to enhance our respective markets.

“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.  I am pleased to announce the signing of this arrangement on the occasion of the CFTC’s first fintech conference, FinTech Forward 2018: Innovation, Regulation and Education.”

ASIC chair James Shipton said, “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. 

“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.”

ASIC’s agreement with Luxembourg’s CSSF follows a five year relationship, after the two regulators signed memorandums of understanding on regulating entities which have presence in both Australia and Luxembourg, specifically for funds management entities regulated under the EU’s Alternative Investment Fund Managers Directive.

On entering the agreement, ASIC commissioner John Price said, “We see this agreement as very timely. Both our jurisdictions are leaders in funds management and other financial services.

“ASIC is very interested in learning from the fintech and regtech innovations that are taking place in the Grand Duchy. We look forward to sharing ASIC’s experience with our Innovation Hub and regulatory sandbox initiatives.”

Claude Marx, chief executive officer of the CSSF said, “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. We look forward to sharing views and experiences with our colleagues from the ASIC.”

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