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
HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
EBA Guide to Monitor Threshold for Intermediate Parent Undertakings
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
PRA Finalizes Approach to Supervision of International Banks
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
FCA Issues PS21/9 on Implementation of Investment Firms Regime
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
EBA Proposes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
IOSCO Proposes Recommendations on ESG Ratings and Data Providers
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
ESMA Group Issues Recommendations on RFR Switch in Interdealer Market
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
ECB Study Assesses Impact of Basel III Finalization Package
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
PRA Updates Remuneration Policy Statement Templates and Tables
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.
