Christopher Woolard, Director of Strategy and Competition at the FCA, said innovation in financial services wasn’t limited by national borders so it was important that it supported overseas businesses which could bring new ideas to benefit UK customers.
“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,” said Christopher.
“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."
To qualify for support offered by the agreement, fintech firms must meet the eligibility criteria of their home regulator’s Innovation Hub, but once referred by the regulator, the business will have access to a dedicated team or person who will help them understand the regulatory framework of the market they wish to join.
Gary Medcraft, Chairman of the ASIC, said: “Since ASIC launched its Innovation Hub last year, we have seen a surge in requests by fintech start-ups 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."
The fintech industries in the UK and Australia are estimated to have revenues of around £6.6bn and £0.7bn a year respectively.
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