According to a recent statement, the agreement between ASIC and the Hong Kong Securities and Futures Commission (SFC) will enable the two regulators to refer innovative fintech businesses to each other for advice and support.
ASIC’s Innovation Hub and the SFC’s Fintech Contact Point offer assistance to innovative fintech businesses to understand regulatory regimes.
“This means Australian fintech businesses hoping to operate in Hong Kong will now have a simple pathway for engaging with the SFC and vice versa,” the statement said.
“This agreement with Hong Kong expands our network of fintech co-operation to a critical financial hub in our region.”
The agreement also provides a framework for information sharing between the two regulators. This will enable ASIC to be informed of regulatory and relevant economic or commercial developments in Hong Kong and to use this to inform Australia’s regulatory approach.
This is the fourth fintech referral agreement ASIC has entered into, following on from agreements with the UK, Singapore and Ontario (Canada).
ASIC commissioner Cathie Armour said, “Financial services are a major contributor to Hong Kong’s US$316 billion economy.
“The co-operation agreement is a boost for Australia’s burgeoning fintech sector and will ease entry into this important market for innovative Australian businesses.”
So is ASIC saying that Hong Kong fintechs will enjoy the same sort of immunity from consumer protection regulation that has been bestowed on Australian fintechs? If people are wondering where the next “Storm” scandal will come from, unregulated fintech seems a pretty high likelihood.