The Australian Securities and Investment Commission (ASIC) and the Abu Dhabi Global Market (ADGM), Financial Services Regulatory Authority (FSRA) signed an agreement to provide mutual support to FinTech businesses seeking to expand in each other’s markets.
As per the agreement, if an Australian company wants to do business in the UAE and meets the eligibility criteria to operate in the country, it would be granted access to RegLab’s support mechanisms. The two regulators would also share information to maintain visibility over regulatory, commercial, and economic developments in both countries.
The agreement continues the long-established tradition of ADGM to build partnerships with international hubs. Recently, Australia also signed similar agreements with the Monetary Authority of Singapore, the Kenya Capital Markets Authority, and the Hong Kong authorities.
ASIC chairman Greg Medcraft said in a statement that national borders should not limit FinTech innovations and developments. All these agreements would help Australian entrepreneurs find new exciting opportunities and benefit from partner’s experiences, added Medcraft.
Richard Teng, CEO of ADGM FSRA commented:
In MENA, the opportunities and potential for FinTech to advance financial inclusion, economic benefits, and growth are enormous. With this FinTech collaboration, ADGM and ASIC can tap into the strengths and network of each other’s markets to support technology startups and innovators in advancing their creative solutions into new markets.
According to ASIC, UAE was the Australia’s largest trading partner in the Middle East. In 2015, goods and services trade between the countries accounted for AU$ 8.8 billion. Last year, the Australian regulator established its sandbox policies to allow FinTech companies to test certain products or services for a limited period without having the necessary licenses.