FinTech proponents across the UK and Australia will see the cohesion of regulatory authorities in both countries as startups and firms expand into each others markets, prompting a heightened level of cooperation.
More specifically, both the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) have signed a cooperation agreement that facilitates the expansion of FinTech startups in each respective regulatory jurisdiction. The initiative was designed to help eliminate select barriers to entry into both the UK and the Australian markets, which helps streamline business innovation across a variety of channels.
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These include, among others, automated financial advice, crowd-sourced equity funding, digital payments, and blockchain business models, many of which have caught fire in both the UK and Australia over the past year. Both countries have seen substantial investments in this space, a process that is expected to only increase in frequency due to the new regulatory privileges afforded by the FCA and ASIC.
In particular, fintech industries in the UK and Australia are estimated to yield annual revenues of around $9.52 billion and $985,000 respectively. In terms of specifics, ASIC has already dealt with approximately 75 start-ups, which include 10 licensing agreements while the FCA’s innovation hub has supported over 200 businesses and authorized 18.
The new agreement will also help entice entry into both markets given the impetus provided by the joint act – an initiative that is expected to promote overall investment and startup growth in the UK and Australia.