The Dubai Financial Services Authority or popularly known as DFSA and the Monetary Authority of Singapore, MAS, jointly got into a Fin-Tech agreement, which would help to provide a better framework for collaboration and referrals done between the teams involved in innovation at both the ends.
The agreement is done to make both the authorities commit to create an environment supporting the steadfast development of various financial services while using latest technology.
The DFSA’s Chief Executive Ian Johnston said, “We are pleased to formalise an agreement with MAS to support the growth of innovation in financial services. Co-operation between MAS and the DFSA will help create synergies and greater understanding between our two markets and will enable FinTech firms to extend their reach globally.” The agreement is based on a referral system that aims to help the authorities in referring various innovator enterprises between their respective innovation and development functions. It also outlines a clear process-map which outlines how to share and utilize information available on innovation in each relevant market.
In addition, the agreement talks about the vision and goals of both the authorities to jointly work on new innovation projects while applying major technologies like digital or mobile payments, flexible platforms (API), distributed ledgers, blockchain, big data, and other latest technologies. MAS and DFSA are also the members of the newly-established Global Financial Innovation Network, GFIN. This network consists of a total of 12 financial regulators and other global organisations. The GFIN wants to carry out joint projects and then share their experiences of various financial advancements to enhance economic stability, reliability, and customer outcomes and inclusion.
There are various regulators from countries like United Kingdom, Australia and Hong Kong as members of GFIN. The GFIN also further builds upon the mutual relationships between each regulator. An example of this is that the DFSA has mutual Fin-Tech co-operation agreements with Investment Commission and Australian Securities, the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, the Hong Kong Insurance Authority, and the Malaysian Securities Commission.
These agreements enlarge the on-going association between the MAS and DFSA who have signed an MoU since 2008, which gives administrative co-operation in the banking, insurance and other capital markets. It also helps in a give and take of information for various purposes.