The Monetary Authority of Singapore (MAS) and the Australian Securities and Investments Commission (ASIC) have signed a deal aimed at supporting FinTech startups in Singapore and Australia.

The Innovation Functions Co-operation Agreement will enable FinTech firms to establish initial discussions in their reciprocal market faster, while receiving advice on the required licences – reducing the regulatory uncertainty and time to market.

In order to qualify for the support offered by the agreement, businesses must meet the eligibility criteria of their home regulator. Once referred, firms will be helped to understand the regulatory framework in the market they wish to join.

Sopnendy Mohanty, chief FinTech officer at MAS, noted: “This agreement between the MAS and ASIC will create opportunities for FinTech businesses from Singapore and Australia to grow and expand into each other’s markets. Singapore has a vibrant FinTech ecosystem, reinforced by sound infrastructure and a growing talent pool, to support companies intending to use Singapore as a gateway to other markets in Asia.”

Greg Medcraft, chairman of ASIC, added: “We recognised that innovation in financial services is not confined by national borders. ASIC is committed to encouraging innovation that has the potential to benefit financial consumers and investors. Since ASIC launched its Innovation Hub last year, we have seen a surge in requests by FinTech startups seeking assistance about how to navigate the regulatory requirements. In particular we have dealt with robo or digital advice, crowdsourced equity funding, payments, marketplace lending and blockchain business models.”

ASIC and MAS have also committed to exploring joint innovation projects together, and to share information on emerging market trends and their impact on regulation.

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