The Dubai Financial Services Authority (DFSA) and the Australia Securities and Investment Commission (ASIC) have signed a cooperation agreement, expected to provide mutual understanding on financial innovation in each jurisdiction.
The agreement follows the DFSA, which is charged with regulating of the Dubai International Financial Centre, setting up a number of initiatives aimed at encouraging fintech innovation, including the FinTech Hive accelerator program and the Dubai Future Accelerators, which comprises a nine-week program that pairs tech companies with government organisations.
ASIC and the DFSA, under the arrangement, will be able to refer fintech firms to each other for support provided through their respective fintech functions, with the DFSA offering up a sandbox-like Innovation Testing Licence to successful applicants.
The agreement will also see both organisations work together on the sharing of information, with regulatory technology (regtech) trials expected to occur.
The UAE's Abu Dhabi Global Market Financial Services Regulatory Authority also partnered with ASIC in July, hoping to provide mutual support to fintech businesses seeking to operate in each other's markets.
This is the latest in a string of fintech agreements ASIC has entered into with international regulators, following one most recently signed with China earlier this month.
ASIC's agreement with the China Securities Regulatory Commission (CSRC) allows both parties to share information that will enable the regulators to maintain visibility over regulatory and relevant economic or commercial developments that occur in each other's markets.
In June, ASIC had announced the completion of a framework for co-operation with the Japan Financial Services Agency aimed at promoting innovation in financial services in both countries.
It followed the commission kicking off an arrangement with the Hong Kong Securities and Futures Commission earlier that month to provide mutual support to fintech businesses from Australia and Hong Kong seeking to operate in each other's markets.
Meanwhile, Singapore and Australia have been working on a deal to better support cross-border collaboration between fintech startups in both countries.
ASIC has also partnered with Indonesia, Kenya, Malaysia, Canada, the UK, and Switzerland, touting fintech innovation as its purpose.
PREVIOUS AND RELATED COVERAGE
The draft legislation and regulations states that eligible Australian fintech businesses will be able to test their products and services with up to 100 customers for a maximum period of 24 months.
The tax incentives introduced last year excluded companies that have finance activities as their predominant activities, making the legislation restrictive.
A report from Capgemini has said financial institutions risk disintermediation if APIs are not opened and customer-interaction models are not tweaked in the wake of emerging fintech players.