The China Securities Regulatory Commission ('CSRC') and
Australian Securities and Investments Commission ('ASIC') have entered into an
agreement yesterday
to promote innovation in financial services in their respective markets.
The Information Sharing
Co-operation Agreement further underlines the significance of the broader
Australia-China trade and investment relationship. China is Australia's largest
two-way trading partner in goods and services (valued at AU$155.2 billion in
2016, up 3.7% on the previous year). China is also Australia’s largest export
market (AU$93 billion in 2016) and Australia’s largest source of imports (AU$62.1
billion in 2016).
Signing the Agreement, ASIC Chairman Greg Medcraft said, “Co-operation
between regulators is essential to realise the benefits of the technological
revolution. Understanding new developments and their impact in overseas markets
helps us to remain proactive and forward-looking in our domestic approach. This
Agreement represents an exciting opportunity for us to learn more about the
Chinese fintech sector, which is renowned for its success and dynamism. We also
look forward to sharing our insights and experiences on regtech with the CSRC.”
Shiyu Liu, CSRC Chairman said, “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. However,
financial market regulators around the globe also face new requirements and
challenges posed by market innovations. 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 cooperation between
the two authorities.”
The Agreement provides a framework for information sharing
between the two regulators on emerging market trends and developments, as well
as regulatory developments pertaining to innovation in financial services. This
will enable the CSRC and ASIC to keep abreast of fintech activity in each
other's jurisdictions, and help to inform domestic regulatory approaches in the
context of a rapidly changing global financial environment.
In recognition of the importance of regulators keeping pace
with the fintech industry, the Agreement also specifically provides that the
CSRC and ASIC will collaborate through sharing information on regulatory
technology ('regtech') trials.
To date, ASIC has entered fintech referral and information-sharing agreements with
the Monetary Authority of Singapore, the United Kingdom’s Financial Conduct
Authority, Ontario Securities Commission, Hong
Kong Securities and Futures Commission, the
Japan Financial Services Agency, Malaysia
Securities Commission, Abu Dhabi Financial Services Regulatory Authority,
and the
Financial Market Supervisory Authority, Switzerland.
In addition, information-sharing agreements have been signed
with the Capital Markets Authority, Kenya and Otoritas
Jasa Keuangan, Indonesia.
