Shearman & Sterling | FinTech | CFTC and ASIC Agree to FinTech Information Sharing Arrangement 
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  • CFTC and ASIC Agree to FinTech Information Sharing Arrangement 

    The Commodity Futures Trading Commission (CFTC) and the Australian Securities and Investments Commission (ASIC) last week signed an arrangement designed to support cross-border FinTech innovation through their respective FinTech initiatives, LabCFTC and the ASIC Innovation Hub.  The arrangement will facilitate information sharing between the two regulators in respect of emerging trends and developments, regulatory issues pertaining to FinTech innovations and best practices, among other things.  It also includes a referral mechanism that will allow the CFTC and ASIC to refer to one another innovators that wish to operate or have questions about operating in the other’s jurisdiction.  The arrangement further calls for joint proofs of concept, trials and innovation competitions, where permitted, as well as periodic meetings to update each other on FinTech and RegTech trends and developments of common interest.

    CFTC Chairman J. Christopher Giancarlo stated that the arrangement will “encourage the development of emerging financial and compliance technologies and continue to enhance global awareness of the critical role of regulators in 21st century digital markets,” while ASIC Chair James Shipton said the arrangement will “assist[] innovative businesses to grow across borders and allow[] for greater information sharing and cooperation by the two regulators.”

    The arrangement follows similar agreements reached by the CFTC with the Monetary Authority of Singapore and the U.K. Financial Conduct Authority, and reflects the globalization of FinTech markets and the CFTC’s commitment to cross-border collaboration among regulators.