The Dubai Financial Services Authority (DFSA) and the Securities and Futures Commission (SFC) in Hong Kong have entered into an agreement to establish a framework of cooperation on financial technology (fintech) innovation.

 The agreement will further strengthen the efforts of both authorities to develop an innovations-friendly ecosystem in their respective markets, reported Wam, the Emirates official news agency.

The signing took place between Ian Johnston, chief executive of the DFSA, and Ashley Alder, chief executive of the SFC, in Hong Kong.

Under the agreement, both authorities will share information on developments and innovations in FinTech in their respective markets. The agreement also intends to encourage both regulators to refer innovative firms to one another’s markets and to provide them with regulatory guidance.

Johnston said, "Providing a regime that fosters innovation in the Dubai International Financial Centre, DIFC, is a strategic priority for us. This agreement with Hong Kong’s SFC deepens cooperation between our two markets and will build a common understanding of the principles of good innovation."

"This agreement underscores the SFC’s efforts to strengthen regulatory collaboration and promote innovation in financial services," said Alder.

"We look forward to working closely with the DFSA to support FinTech development in both our markets."

The agreement extends the existing relationship between the SFC and the DFSA with a joint commitment to maintain the highest standards of cooperation. Both regulators are signatories to the IOSCO Multi-lateral Memorandum of Understanding (MoU). They also entered into a bi-lateral MoU in 2008.