The respective regulators of the Hong Kong and Dubai financial markets have signed an agreement designed to further their mutual cooperation on all things fintech.
The Dubai Financial Services Authority (DFSA) and the Hong Kong’s Securities and Futures Commission (SFC) will share information and innovations in their respective markets as well as providing referrals and regulatory advice to startups in either jurisidiction.
Both Dubai and Hong Kong have strong fintech ambitions and they will be hoping that the agreement will be mutually beneficial and also help acheive the right regulatory balance between innovation and adequate supervision. Nor is it the first time the two have collaborated. A fintech-inspired memorandum of understanding (MoU) was signed back in 2008. The two are also signatories to the IOSCO multilateral MoUs.
“This agreement underscores the SFC’s efforts to strengthen regulatory collaboration and promote innovation in financial services," said Ashley Alder, the SFC’s Chief Executive Officer. “We look forward to working closely with the DFSA to support Fintech development in both our markets.”
“Providing a regime that fosters innovation in the Dubai International Financial Centre (DIFC) is a strategic priority for us," said Ian Johnston, chief executive of the DFSA. "This agreement with Hong Kong’s SFC deepens cooperation between our two markets and will build a common understanding of the principles of good innovation."
Both regulatory bodies have stepped up their engagement with the fintech world of late. Earlier this year, the DFSA launched its Innovation Testing Licence (ITL), designed to allow fintechs to experiment with new products. And in March 2016, the SFC established its FinTech Contact Point, designed to provide better communication between regulators and fintech startups.