Posted inRegulation

Hong Kong’s regulator sets up link with fintech firms

The Securities and Futures Commission has established a fintech contact point and set up an advisory group as fintech momentum builds.

The online contact point, run by SFC’s risk and strategy unit, is intended to “to encourage businesses involved in the development and application of financial technology in Hong Kong to engage with the SFC”.

A fintech advisory group, which will focus on the opportunities, risks and regulatory implications of developments, was also established.

The SFC said various fintech activities are relevant to regulatory work, such as 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.

In addition, the regulator said big data, data analytics and artificial intelligence to support front and back office operations of licensed intermediaries, and data security technologies also come under its remit.

Financial technology has developed rapidly in recent years, the regulator said, citing the government’s “Report of the Steering Group on Financial Technologies”.

Earlier this year, a report by EY showed that Hong Kong has the highest rate of financial technology use of all markets surveyed globally.

Part of the Mark Allen Group.