The agreement with the Australian Securities and Investments Commission (ASIC) will help firms work in both markets.
The Financial Conduct Authority has signed a deal with the Australian regulator to support innovative financial technology companies.
The agreement with the Australian Securities and Investments Commission (ASIC) will help firms work in both markets.
Christopher Woolard, director of strategy and competition at the FCA, said: “Innovation in financial services isn’t limited by national borders and so it’s important that we support overseas businesses that have new ideas that could benefit British consumers.
“We also know that many British firms wish to use the UK as a springboard to launch their businesses or products internationally, making them potentially more sustainable challengers.
“That is why this agreement – the first of many, we hope – is important. With ASIC, we will reduce the barriers for authorised firms looking to grow to scale overseas and to assist non-UK innovators interested in entering the market we oversee.”
The FCA and ASIC created ‘Innovation Hubs’ in October 2014 and April 2015 to help innovative businesses navigate financial regulation and achieve authorisation.
The ‘Hub’ has supported over 200 businesses and the authorisation of 18 businesses. ASIC has dealt with over 75 innovative start-ups including the granting of 10 licences.
Firms looking to qualify for the support offered by the agreement have to first contact the Innovation Hub. They will then gain access to a team or contact person to help them gain authorisation in the market they wish to join. After being authorised they will have a dedicated contact for a year.
Greg Medcraft, chairman of the Australian Securities and Investments Commission, said: “ASIC is committed to encouraging innovation that has the potential to benefit financial consumers and investors.
“Since ASIC launched its Innovation Hub last year we have seen a surge in requests by fintech startups seeking assistance about how to navigate the regulatory requirements. In particular we have dealt with robo or digital advice, crowd sourced equity funding, payments, marketplace lending and blockchain business models.
“It is very exciting to observe and clearly some business ideas will want to scale up internationally. We believe this agreement with the FCA will help break down barriers to entry both here and in the UK.”
ASIC and the FCA have also committed to sharing information on emerging market trends and their impact on regulation.
The growing fintech industries in the UK and Australia are estimated to have revenues of around £6.6bn and £0.7bn a year.
