The Securities and Futures Commission (SFC) has entered into a cooperation agreement with the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) to establish a framework for cooperation on financial technology (Fintech) (Note 1).
Under the agreement, the SFC and the FSRA will cooperate on information sharing, potential joint innovation projects and referrals of innovative firms seeking to enter one another’s markets.
“This agreement reflects the SFC’s continued efforts to collaborate with international regulatory counterparts to promote innovation in financial services,” said Ms Julia Leung, the SFC’s Deputy Chief Executive Officer and Executive Director of Intermediaries. “We look forward to sharing our experience with the FSRA on Fintech developments in our markets.”
“This cooperation further deepens the ongoing partnership and collaboration between Hong Kong and Abu Dhabi, and augments ADGM’s commitment in supporting the growth and financial developments of Abu Dhabi and the Middle East, Africa and the South Asia region,” said Mr Philippe Richard, Director of International Affairs of the FSRA. “We look forward to working closely with the Hong Kong SFC to support our Fintech start-ups and our innovative businesses, from regulations to adoption, in advancing and applying their solutions to each of our respective financial markets.”
The agreement follows the launch of the SFC’s Fintech Contact Point in March 2016 and the FSRA’s Regulatory Laboratory in November 2016 (Notes 2 & 3).
- The cooperation agreement, signed on 9 May 2018, is posted on the SFC website.
- The SFC established its Fintech Contact Point in March 2016 to enhance communication with businesses involved in the development and application of Fintech in Hong Kong. The purpose of the Fintech Contact Point is to facilitate the Fintech community’s understanding of the current regulatory regime and to enable the SFC to stay abreast of the development of Fintech in Hong Kong.
- The FSRA launched the Regulatory Laboratory in November 2016 to provide a controlled environment for innovator businesses to develop and test innovative solutions that promote efficiency and consumer choices in the financial sector, and to support the FSRA in the development of risk-appropriate and effective regulations for such innovation.