The FCA and ASIC will cooperate with each other to operate a referral mechanism and share information.
Today Australia’s Australian Securities and Investments Commission (ASIC) and the UK’s Financial Conduct Authority (FCA) signed a world-first cooperation agreement under which innovative FinTech companies will have more support from financial regulators as they seek to expand their business on a global scale and require additional regulatory permissions.
This agreement follows the creation of Innovation Hubs at the FCA and ASIC in October 2014 and April 2015, respectively. The Innovation Hubs were created to help businesses with innovative ideas navigate financial regulation, support them through the authorisation process and engage with the regulator.
Since its creation the FCA has assisted over 200 businesses and 18 with authorisation, while ASIC has worked with over 75 start-ups and granted 10 licences.
Given that the FinTech industries in the UK and Australia are estimated to generate around $12.5 billion (£6.5 billion) and $1.3 billion (£0.7 billion) in annual revenues and both are growing rapidly, it is a crucial time to help FinTech start-ups stifled by regulation get on with their core operations.
Today ASIC and the FCA have attempted to cement their commitment to encouraging innovation in their jurisdictions by acknowledging that national borders shouldn’t limit innovation in financial services.
As a result of the agreement, the FCA and ASIC will cooperate with each other to operate a referral mechanism and share information.