The Dubai Financial Services Authority (DFSA) and Securities Commission Malaysia (SC) are joining efforts to develop fintech innovations, with Islamic finance central to their collaboration.
The two regulators have agreed to share information on developments and innovations in fintech and intend to consider participating in innovation projects on the application of novel approaches to fintech in each market. Under the agreement, a framework for cooperation and referrals between the innovation functions of each party is set out and this includes a referral mechanism enabling the authorities to refer innovator businesses between their respective innovation functions and to provide the businesses with regulatory guidance.
“Given the significance of Islamic finance in both Malaysia and Dubai, fintech developments in that sector will be of particular interest,” noted the DFSA.
“By collaborating with the SC, we will further strengthen our fintech proposition across traditional and Islamic finance markets,” said DFSA Chief Executive Ian Johnston, who recently also signed a fintech cooperation agreement with Hong Kong’s Securities and Futures Commission (SFC).
In fact, both the DFSA and the SC have been hard at work building fintech bridges in Asia Pacific and the Middle East. The SC also engaged with SFC as well as regulators in Singapore and Australia.
“The fintech bridges with major markets in the Asia-Pacific and the Middle East form part of the SC’s digital strategy, and build on the already well-established relationships that the SC has with these regulators. Such efforts will promote innovation within capital markets, and enhance the cross-pollination of digital finance concepts which will benefit financial services institutions, start-ups and investors alike,” said the SC’s chairman, Ranjit Ajit Singh.