Dubai, Australia ink agreement on fintech cooperation

The Dubai Financial Services Authority (DFSA) has signed an agreement with the Australian Securities and Investments Commission (ASIC) that outlines a framework for cooperation on fintech innovation.

Under the agreement, both the authorities will work towards providing a regulatory framework that promotes innovation in financial services and regulatory compliance in their respective markets. They will share information on developments in innovation in each market.

In addition, the agreement introduces a referral mechanism that enables the authorities to refer innovative businesses to their respective authorities.

“Today’s agreement underscores our commitment to maintaining strong channels of communication with our regulatory peers and creates a regulatory framework that supports the latest developments in FinTech innovation. We have a long-standing productive relationship with our colleagues at ASIC, which we look forward to extending to this fast-developing industry,” Ian Johnston, Chief Executive of the DFSA.

The agreement is in line with the DFSA’s innovation strategy, which complements the National Innovation Strategy to make the UAE a global innovation hub.

The ASIC is already a leader in the fintech space. In March 2015, it established the Innovation Hub to assist innovative fintech businesses to navigate its regulatory system. Through its Innovation Hub, ASIC engages with the fintech community, provides assistance to innovative fintech start-ups and liaises with fintech experts through ASIC’s Digital Finance Advisory Committee.

“We are excited to partner with the DFSA to help encourage fintech innovation in Australia and Dubai. RegTech is becoming more and more important - this is a new frontier in our bilateral cooperation that will benefit both regulators and businesses,” John Price, Commissioner, ASIC, said.