The finance regulators have signed off on a framework for co-operation allowing entry for financial technology firms in each other's markets.
The Japan Financial Services Agency (JFSA) and Australian Securities and Investments Commission (ASIC) announced the completion of a framework for co-operation to promote innovation in financial services in Japan and Australia.
This co-operation framework enables the JFSA and ASIC to share information and support the entry of innovative fintech businesses into each other's jurisdiction.
Growing Asian Hinterland
With a vibrant financial technology community, Australia has inked fintech referral and information-sharing agreements with the Monetary Authority of Singapore and Hong Kong's Securities and Futures Commission.
This Framework will help open up an important market for Australian fintechs. The Japanese economy is the third largest in the world, with services - including financial services - accounting for about three quarters of GDP.
Long Awaited Legal Changes
In recent years, the JFSA has been actively involved in encouraging fintech through a range of measures including the modification of the legal system to enable financial groups to invest in finance-related IT companies more easily and establishing a legal framework for virtual currency and Open API.
Shunsuke Shirakawa, JFSA Vice Commissioner for International Affairs, said, «We are delighted to establish this Co-operation Framework with ASIC. ASIC is one of the leading Fintech regulators that actively promote fintech by taking progressive actions including setup of the Innovation Hub.»
Japan's Australian Appetite
Australia's financial sector has been a happy hunting ground for Japanese firms. In recent moves Nippon Life Insurance acquired the life assurance business of National Australia Bank.
In October last year A subsidiary of Sony Corporation, Sony Life Insurance, acquired a substantial stake in diversified Australian financial services company ClearView Wealth.
Dai-Ichi Life and Meiji Yasuda Life are also known to be in the running to acquire the wealth management business of ANZ.
