Luxembourg & Australia reach FinTech and RegTech agreement

Luxembourg and Australia have agreed to cooperate on financial innovation in each jurisdiction.

The Luxembourg Commission de Surveillance du Secteur Financier (‘CSSF’) and The Australian Securities and Investments Commission (‘ASIC’) have signed a Cooperation Agreement on FinTech and RegTech.

It will provide a framework for information sharing between the two regulators on financial technology (FinTech) and regulatory technology (RegTech).

ASIC Commissioner John Price said, “We see this agreement as very timely. Both our jurisdictions are leaders in funds management and other financial services. ASIC is very interested in learning from the FinTech and RegTech innovations that are taking place in the Grand Duchy. We look forward to sharing ASIC’s experience with our Innovation Hub and regulatory sandbox initiatives.”

In 2013, the regulators entered into memorandums of understanding on regulating entities that have presence in both Australia and Luxembourg, and specifically for funds management entities regulated under the EU’s Alternative Investment Fund Managers Directive (AIFMD).

This agreement is ASIC’s fifteenth FinTech cooperation agreement overall and the fourth FinTech information-sharing agreement. To date, FinTech referrals and information-sharing agreements have been entered with the Monetary Authority of Singapore, the United Kingdom’s Financial Conduct Authority, a number of provincial Canadian regulators including the Ontario Securities Commission, Hong Kong Securities and Futures Commission, the Japan Financial Services Agency, Malaysia Securities Commission, New Zealand Financial Markets Authority, Abu Dhabi Financial Services Regulatory Authority, the Financial Market Supervisory Authority, Switzerland and the Dubai Financial Services Authority.

Claude Marx, CEO of the CSSF added, “Fostering our cooperation with ASIC makes sense to us. Australia and Luxembourg are both strongly innovation-oriented jurisdictions, and we do think that such agreement will enhance our ability to adapt ourselves to the upcoming fintech challenges. We look forward to sharing views and experiences with our colleagues from the ASIC.”

In addition to developing guidance about how these new developments fit into our regulatory framework, in 2015, ASIC launched its 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.

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