CFTC and SARB to Cooperate to Promote Fintech Innovation
CFTC and SARB signed a Statement of Intent to cooperate and support innovation through each authority’s respective fintech initiative—CFTC’s LabCFTC and SARB’s Fintech Unit. The Statement focuses on information-sharing regarding fintech market trends and developments. It is also designed to facilitate referrals of fintech businesses and the sharing of information and insights derived from each authority’s experiences and relevant events, proofs of concept, trials, or innovation competitions. The arrangement will support both authorities’ efforts to facilitate market-enhancing fintech innovation and ensure international cooperation on emerging regulatory best practices.
The intent is to initiate cooperation and information sharing between the innovation functions of each authority. Each innovation function of CFTC and SARB intends to act in a manner consistent with the following:
- Information Sharing. Subject to applicable domestic laws and regulations and, where appropriate, the innovation functions intend to share information related to fintech. Such information may include, but is not limited to emerging trends and developments pertaining to fintech; innovations in fintech and regulatory issues pertaining to such innovations; experiences with and best practices in engaging with fintech innovation; and activities of domestic and international organizations or bodies that promote innovation in fintech.
- Support. Each innovation function may provide support to an entity or individual (innovator business) that includes assistance to understand the regulatory framework in the relevant authority’s jurisdiction and the framework’s potential application to the innovator business; assistance to understand the regulatory issues or ambiguity identified; and guidance with respect to any applicable authorization process of the relevant Authority for licensing, registering, approving, or otherwise making an innovator business subject to the Authority’s regulatory requirements.
- Referrals. An Authority’s innovation function may refer an innovator business to the other Authority’s innovation function where the innovator business meets the referring Authority’s criteria for referral; and consents in writing to disclosure to the other Authority of information about the innovator business. The innovation function receiving the referral should offer support to the innovator business.
- Innovation Learning. The innovation functions intend to organize and to invite each other to observe in, and to consider hosting jointly where permitted, events, proofs of concept, trials, or innovation competitions supported by sandboxes, accelerators, launchpads, or similar endeavors related to fintech.
Keywords: Americas, Middle East and Africa, US, South Africa, Banking, Securities, Fintech, LabCFTC, Information Sharing, SARB, CFTC
Previous Article
Central Bank of Bahamas Issues Bank Lending Conditions Survey ReportRelated Articles
BIS Paper Studies Impact of Fintech Lending on Small Businesses in US
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
EBA Launches EU-Wide Transparency Exercise in 2022
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
EC Rule Lists Advanced Economies for Market Risk Capital Calculations
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
