The Hong Kong Securities and Futures Commission (SFC) has entered into an agreement with the Australian Securities & Investments Commission (ASIC) to establish a framework for FinTech cooperation.

Under the agreement, the SFC and ASIC will cooperate to share information on emerging FinTech trends, developments and related regulatory issues as well as on organisations which promote innovation in financial services.

This cooperation agreement builds on the already close ties between ASIC and the SFC, as well as the Australia-Hong Kong trade and investment relationship more broadly. Hong Kong is already Australia's seventh most important destination for services exports, valued at AUD$2.4 billion last year, and sixth largest source of services imports, valued at AUD$3 billion.

In addition, the agreement provides for a bilateral mechanism for referrals of innovative firms seeking to enter one another’s markets. The agreement will enable the SFC and ASIC to refer innovative FinTech businesses to each other for advice and support via ASIC's Innovation Hub and its Hong Kong equivalent, the SFC's Fintech Contact Point.

Ashley Alder, the SFC’s chief executive officer, said: “Greater regulatory cooperation is important for us to stay abreast of the rapid pace of innovation in financial services and how it intersects with securities regulation.”

Cathie Armour, ASIC commissioner, added: “Financial services are a major contributor to Hong Kong's $316 billion economy. The cooperation agreement is a significant boost for Australia's burgeoning FinTech sector and will ease entry into this important market for innovative Australian businesses.”

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