Release Number 8298-20
CFTC and South African Reserve Bank Announce Cooperative Effort to Promote Fintech Innovation
November 02, 2020
Washington, D.C. — The Commodity Futures Trading Commission and the South African Reserve Bank (SARB) today announced they have signed a Statement of Intent to cooperate and support innovation through each authority’s respective financial technology (fintech) initiative—CFTC’s LabCFTC and SARB’s Fintech Unit.
“We welcome the opportunity for enhanced cooperation with our South African colleagues to promote responsible fintech innovation. This arrangement builds on recent efforts by the CFTC to strengthen international collaboration in this realm,” said CFTC Chairman Heath P. Tarbert, referencing the agency’s 2018 arrangements with authorities in the United Kingdom, Singapore, and Australia, and the 2019 joining of the Global Financial Innovation Network. “Coordinating with our international partners has many benefits, including helping us keep up with the rapid pace of technological changes in our markets.”
Collaboration amongst authorities is increasingly becoming a crucial component to understanding approaches to fintech innovation. Such collaborative efforts will promote ongoing joint knowledge sharing on complex fintech matters.
The Statement of Intent on Cooperation and the Exchange of Information on Financial Technology Innovation focuses on information sharing regarding fintech market trends and developments. It is also designed to facilitate referrals of fintech businesses and the sharing of information and insights derived from each authority’s experiences and relevant events, proofs of concept, trials, or innovation competitions. The arrangement will support both authorities’ efforts to facilitate market-enhancing fintech innovation and ensure international cooperation on emerging regulatory best practices.
In service to the CFTC’s goal of encouraging innovation and enhancing the regulatory experience for market participants at home and abroad, LabCFTC’s mission is to be the FACE of innovation within the Commission in promoting responsible innovation among financial industry, stakeholders, and policymakers by:
- Facilitating dialogue between innovators and those within the CFTC on financial and technological innovations;
- Advancing policy and regulation in financial innovation;
- Coordinating internally and externally with International, Federal, and State regulators, organizations, and associations; and
- Educating internal and external stakeholders on financial technology and innovation in the financial markets to identify how innovations are being used.
About SARB’s Fintech Unit
The Fintech Unit was established in 2017, to further the SARB’s efforts to embrace fintech innovation whilst ensuring appropriate alignment to policies, regulations, and supervisory regimes.