Regulatory body ASIC has entered into an agreement with the China Securities Regulatory Commission to “promote innovation” and share information on market trends and regulatory development in the financial services sector.
According to a statement from ASIC, the agreement will provide a “framework for information sharing between the two regulators” and will allow them to stay updated on “fintech activity” in either jurisdiction.
The agreement has a specific focus on sharing information on regulatory technology, or ‘regtech’, “in recognition of the importance of regulators keeping pace with the fintech industry”.
ASIC chairman Greg Medcraft said he looked forward to the two regulators sharing insight on regtech.
“Understanding new developments and their impact in overseas markets helps us to remain proactive and forward-looking in our domestic approach,” Mr Medcraft said.
“This agreement represents an exciting opportunity for us to learn more about the Chinese fintech sector, which is renowned for its success and dynamism.”
China is a recognised world leader in development and adoption of customer-facing financial services technology such as payments and lending, according to the statement, with investment in Chinese fintech ventures coming to approximately $13 billion in 2016.
CSRC chairman Shiyu Liu said regulators around the world faced new challenges and requirements because of market innovations.
“In the past few years, the rapid development of fintech has created ample opportunities to introduce new financial services, enhance financial inclusion and fulfil investors’ needs,” he said.
“The agreement between CSRC and ASIC will provide an effective channel for timely exchange of information on fintech developments and regulatory issues, and enhance regulatory co-operation between the two authorities.”
The CSRC is one of China’s regulators in the financial sector with a remit over the country’s securities and futures market, and has responsibility for policy development, supervision, investigation and enforcement, according to the statement.
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