Many financial regulators are struggling to keep up with the pace that fintech innovators and innovations are setting as they continually push the regulatory parameters. Now, Hong Kong is acting.
In Hong Kong to stay in touch with the fast moving digital disruptors The Securities and Futures Commission (SFC) has established a Fintech Contact Point, according to a statement from Wednesday.
It serves as a dedicated channel to encourage businesses involved in the development and application of financial technology to engage with the SFC.
The watchdog has also established a Fintech Advisory Group which will focus on the opportunities, risks and regulatory implications of developments related to fintech.
Growing Digital Challenge
According to the Hong Kong Government’s «Report of the Steering Group on Financial Technologies», fintech has developed rapidly in recent years.
A variety of fintech activities are relevant to the SFC’s regulatory work. Among these are automated trading systems; financial product investment and distribution platforms, including robo-advisors; financing platforms, including peer-to-peer lending and equity crowdfunding platforms; and distributed ledger technology, including the application of blockchain to licensed intermediaries, securities and capital markets.
Many Relevant Activities
Other fintech activities relevant to the SFC’s work include big data, data analytics and artificial intelligence to support front and back office operations of licensed intermediaries; compliance, risk and regulatory technologies, including technologies that support regulatory compliance, regulatory reporting and know-your-client; and cyber and data security technologies, including those for client authentication.
