The Dubai Financial Services Authority (DFSA) deepened ties with regulators in Hong Kong today signing two cooperation agreements to enhance collaboration in financial technology (FinTech) innovation. The agreements reinforce the existing strong relationship between the authorities in the two markets, which cooperate in the regulation of the financial services sector and FinTech businesses.
The DFSA signed bilateral agreements with Hong Kong’s Insurance Authority (IA) and the Hong Kong Monetary Authority (HKMA), in Hong Kong. Under the terms of each agreement, the authorities will cooperate on information sharing and referrals of innovative businesses. The agreement with the HKMA extends to collaborating on joint innovation projects.
Mr Ian Johnston, Chief Executive of the DFSA, said: “Our Agreement with the authorities in Hong Kong is indicative of the importance we place on maintaining a close relationship with Hong Kong’s financial services regulators. The signing of these agreements in FinTech is a natural next step to the collaboration we have in regulating traditional financial services.”
The agreements follow the signing of a similar cooperation agreement between the DFSA and Hong Kong’s Securities and Futures Commission in August. It means that the DFSA now has agreements in place with all three financial counterparts in the Special Administrative Region.
Mr John Leung, Chief Executive Officer of the IA, said: “The IA takes proactive steps in strengthening collaboration with other jurisdictions in FinTech development. The agreement with DFSA signifies closer cooperation between the two authorities in fostering and creating business opportunities for FinTech firms on a global reach. The IA will consider signing similar cooperation agreements with insurance regulators in other jurisdictions.”
Shu-Pui Li, Executive Director of the HKMA, said: “The cooperation agreement with DFSA showcases our efforts to work with the international FinTech community to facilitate the healthy development of the FinTech ecosystem. The HKMA will continue to explore potential collaboration opportunities with other authorities to support the upgrading of our banking system towards the higher level of Smart Banking.”
These latest FinTech cooperation agreements form part of the DFSA’s innovation strategy, which complements the National Innovation Strategy, as set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to make the UAE a global hub for innovation. In August, the DFSA launched the first tailored regime for loan and investment crowdfunding platforms in the GCC. In May, the DFSA launched its Innovation Testing Licence, a special class of financial services licence that allows FinTech firms to develop and test innovative FinTech concepts in or from the DIFC.