In an attempt to promote innovation of financial services in both countries, The Australian Securities and Investments Commission (ASIC) has signed a cooperation agreement with the Capital Markets Authority of Kenya (CMA).
The ASIC is Australia’s corporate, markets and financial services regulator that contributes to Australia’s economic reputation and wellbeing by ensuring that Australia’s financial markets are fair, transparent and supported by confident, informed investors and consumers. ASIC works to maintain, facilitate and improve the performance of the financial system and entities in it.
Likewise, the CMA is a regulating body charged with the prime responsibility of supervising, licensing and monitoring the activities of market intermediaries (including the stock exchange and the central depositary and settlement system) in Kenya. It plays a critical role in the economy by facilitating mobilization and allocation of capital resources to finance long-term productive investments.
The agreement was signed during the board meeting of the International Organization of Securities Commissions (IOSCO) held in Hong Kong earlier this week. It sets up a framework for cooperation between the ASIC and CMA that provides for sharing of information in the area of innovation for financial services, as well as regulatory issues.
On the partnership, Chairman, ASIC, Greg Medcraft said,
We are excited to be working more closely with CMA. It operates in a jurisdiction that has seen significant fintech innovation growth. Innovation in financial services isn’t confined by national borders. We hope this agreement will help to break down barrier to entry both here, and in Kenya.
In an official statement, Chief Executive of CMA, Paul Muthaura remarked,
ASIC has developed an Innovation Hub and we are keen to share best practices in terms of how to address regulatory issues pertaining to innovation in financial services. We are committed to facilitating innovation in financial services, leveraging Kenya’s positioning in the region as an innovation center. This however, calls for us to assess lessons learned and to compare strategies to balance innovation and regulation with our peer regulators.
Earlier this year, the federal government published its vision for the future of fintech in Australia, with the overarching message that financial technology is transforming the nation’s financial market, with fintech revolutionizing how business interacts with consumers.