Securities Commission Malaysia (SC) last week entered into an Innovation Cooperation Agreement with the Australian Securities and Investments Commission (ASIC) to further promote innovation in financial services in their respective markets.
Under the agreement, SC and ASIC will work closely to share information on emerging trends and regulatory issues in digital finance. Both regulators will also facilitate referrals of innovative businesses seeking to operate in each other’s jurisdictions, as well as explore potential joint innovation projects relating to the application of new technologies.
SC Chairman Tan Sri Ranjit Ajit Singh signed the agreement with the ASIC Chairman Greg Medcraft on the sidelines of the Salzburg Global Seminar on Finance that was co-chaired by the SC Chairman.
Ranjit said that the cooperation agreement is an important milestone for Malaysia’s digital finance sector and was a positive development for innovative fintech businesses seeking to expand and reach greater scale.
“Even as we continue to enable new forms of innovation in capital markets, we must not lose sight of the need to manage digital risks, by taking a strategic approach to risk management, recruiting digital talent and improving IT architectures.
This collaboration between SC and ASIC in the realm of digital finance will further strengthen the cooperative arrangements between Malaysia and Australia in capital market development and regulation,” said Ranjit.
Medcraft said:” International cooperation on fintech is essential. This agreement will help local businesses grow beyond our borders, and improve our understanding of fintech in the region. We look forward to working more closely with our colleagues at the Malaysian Securities Commission”.
As part of SC’s digital agenda, the regulator has in recent years introduced regulations and initiatives such as equity crowdfunding (ECF), peer-to-peer (P2P) financing, digital investment management (DIM) services, and launched the alliance of FINtech community (aFINity) to engage with the growing financial technology community in Malaysia.