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
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
