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March 05, 2021

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ASIC Enters into Bilateral Cross-Border Cooperation Agreement with US Regulator

On 4 October 2018, the Australian Securities and Investments Commission (ASIC) entered into the ‘Cooperation Arrangement on Financial Technology Innovation’ bilateral agreement (Agreement) with the US Commodity Futures Trading Commission (CFTC) to cooperate and exchange information in the fintech and regtech industries in each jurisdiction. Broadly, the Agreement seeks to enhance mutual understanding, identify market developments and trends, facilitate fintech innovation and foster the use of more efficient and effective regtech.

Specifically, the Agreement sets out the following terms of the cooperative arrangement between ASIC and CFTC:

  • establishment of formal channels of cooperation, information sharing and communication between ASIC’s Innovation Hub with the CFTC’s LabCFTC;
  • facilitation of referrals of fintech companies from one jurisdiction interested in establishing operations in the other jurisdiction;
  • promotion of the establishment of periodic meetings between the regulators to discuss developments and other events as a means of learning from each other; and
  • contemplation of the usage of non-public and confidential information shared between the regulators.

Notwithstanding the above, it is important to note that Agreement is non-binding in nature and does not impose specific obligations on the regulator’s individual responsibilities or create any legal obligations that supersede domestic law. While the Agreement may be non-binding, its objective of alignment and cross collaboration between the US and Australian fintech industries will give local companies greater cross border exposure and accessibility in both jurisdictions as well as providing each regulator with further information on best practices.

Click here to review the full Agreement.

Copyright 2020 K & L GatesNational Law Review, Volume VIII, Number 281



About this Author

Jim Bulling, KL Gates, financial services lawyer, funds management attorney

Mr. Bulling's practise focuses on banking and financial services and he acts for a range of entities in the financial services and funds management industry. His clients include Australian and international investment managers, banks, trustees of superannuation funds, wholesale and retail investment trusts, funds management companies and financial planning groups.

His main areas of focus include banking and financial product disclosure issues, financial services compliance issues, financial product distribution issues and superannuation and...

Felix Charlesworth, KLGates, Financial attorney

Mr. Charlesworth is a commercial and regulatory lawyer with a focus on the financial services industry.

 Mr. Charlesworth advises on a range of regulatory and compliance issues relevant to wholesale and retail fund managers, financial advisers, superannuation fund trustees and other financial services entities. He also has experience in advising multinational corporations about compliance measures targeted at the prevention of bribery and corruption. 

Edwin Tan, KL Gates, investment fund attorney

Mr. Tan is a commercial and regulatory lawyer with a focus on the financial services industry. He advises on a range of Australian regulatory and compliance issues relevant to FinTechs, fund managers, financial advisers and other financial services entities.

Mr. Tan also provides advice on governance and compliance measures targeted at the prevention of bribery, corruption and anti-money laundering.

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