The Australian Securities and Investments Commission (ASIC) and Indonesia's Otoritas Jasa Keuangan (OJK) have entered a Cooperation Agreement to promote innovation in financial services in their respective markets.
The agreement, signed today in Melbourne, establishes a framework for cooperation between OJK and ASIC in the expanding space of innovation in financial services, agreeing to share information on emerging market trends and regulatory issues arising from the growth in innovation. Both parties believe that through cooperation with each other, they will be able to further the promotion of innovation in their respective markets.
The framework for cooperation under this Agreement is a positive confirmation of the strong and longstanding relationship between the two regulators.
Indonesia, with the largest economy in south-east Asia, hosts a fast-growing financial technology sector. Fintechs are now impacting areas such as payments and transfers, financial management, insurance, lending and finance, retail banking and markets, exchanges and supporting services. Providers are offering services including insurance, investment, financing, peer-to-peer lending and crowd funding.
Chairman of the OJK, Pak Muliaman said: ‘I hope this further collaboration will be able to promote innovation in our financial service markets and to deepen engagement that can be used for financial sector development in both countries.'
John Price, ASIC Commissioner said: ‘Many fintechs are not constrained by national borders and it is fundamental that we leverage this to share views, exchange information and to discuss some of the challenges that this can create for fintech businesses and the community.’
'This agreement is also a further reflection of the deep ties between ASIC and OJK. We look forward to working more closely with OJK on the exciting fintech developments in both our countries,' he said.
Background
ASIC is focused on the vital role that fintechs are playing in re-fashioning financial services and capital markets. In addition to developing guidance about how these new developments fit into our regulatory framework, in 2015, ASIC launched an Innovation Hub to help fintechs navigate the regulatory framework without compromising investor and financial consumer trust and confidence.
The Innovation Hub provides the opportunity for entrepreneurs to understand how regulation might impact on them. It is also helping ASIC to monitor and understand fintech developments.
ASIC collaborates closely with other regulators to understand developments, and to help entrepreneurs expand their target markets into other jurisdictions. Fintech cooperation agreements have been signed with a number of other regulators, including the Monetary Authority of Singapore, the United Kingdom’s Financial Conduct Authority, the Ontario Securities Commission and Capital Markets Authority, Kenya.
ASIC is signatory to the International Organization of Securities Commissions (IOSCO) Multilateral Memorandum of Understanding, which gives commitment among over 100 securities regulators to provide each other with mutual assistance and cooperation, particularly in relation to enforcement of securities laws.