The Asia Pacific region reflects a high level of diversity in terms of financial regulatory models. All of the dominant models of financial regulation are represented. This chapter undertakes a comparative analysis of nine jurisdictions and examines current reform trends across the region. The chapter concludes by noting that changes in the financial markets and, in particular, the way in which financial services are delivered will present challenges for all regulatory models. These challenges include the impact of technology or ‘FinTech’ on the delivery of financial services and the creation of new financial assets and products. In addition, as a result of the Global Financial Crisis and the increasing interconnectedness of financial markets, there is greater emphasis on financial stability and macro-prudential supervision.
Vivien Chen, Andrew Godwin and Ian Ramsay
This chapter outlines consumer financial dispute resolution mechanisms in the ASEAN 5 countries, Australia and New Zealand and compares single-body schemes with multiple-body schemes. The comparison between Australia and New Zealand reveals that the choice of schemes inevitably involves trade-offs. While Australia has decisively endorsed the single-body approach, New Zealand’s endorsement of its multiple-body scheme is more qualified. Only time will reveal whether the decision to move towards a single-body system in Australia has been the correct one. There are precedents – such as the system in the UK and Singapore – that augur well for a single-body system. That said, various questions remain open for discussion and research in relation to a single-body system. These questions include how significant the cost implications will be and whether size and scale really matter in terms of the outcomes for consumers.
Angus Chan, Andrew Godwin and Ian Ramsay
This chapter examines the main challenges for achieving regulatory convergence and coordination for depositor preference rules and explicit deposit insurance schemes at the regional level in Asia. The increasing regionalization and integration of banking activities in Asia, as reflected in initiatives such as the ASEAN Banking Integration Framework, suggest a need for cooperation in the area of depositor protection in order to maximise the benefits of banking integration and achieve regional financial stability. However, the level of integration and financial stability is likely to be limited by national regulatory sovereignty and control over depositor protection mechanisms and the absence of a political commitment for ex ante cost-sharing and burden-sharing at the regional level.
Lev Bromberg, Andrew Godwin and Ian Ramsay
Financial technology or Fintech provides economic benefits and increasing levels of financial inclusion. However, it also comes with potential risks to consumers, investors and financial systems. Mitigating these risks while encouraging innovation is a significant challenge for financial regulators. Various initiatives have been adopted to support innovation. At the domestic level, these include regulatory sandboxes and innovation hubs. At the cross-border level, the initiatives include Fintech memoranda of understanding, which are sometimes signed as part of broader Fintech bridges. This chapter examines regional developments in respect of sandboxes, particularly in Australia, Singapore, Hong Kong and Malaysia, and also in respect of Fintech memorandums of understanding and Fintech bridges. The chapter concludes by examining the potential impact of sandboxes and cooperation agreements on regulatory convergence, noting that the pressure for convergence is likely to increase as more jurisdictions establish sandboxes and sign Fintech memorandums of understanding.
Douglas W. Arner, Wai Yee Wan, Andrew Godwin, Wei Shen and Evan Gibson
Asian financial law is at a crossroads between sovereignty and regional integration. This Handbook discusses the conceptual framework of Asian financial law. Regulatory themes explored include financial regulatory models, bank resolution, securities markets’ networking arrangements, derivative regulations in Hong Kong and Singapore and the offshore Renminbi market. Financial integration focuses on ASEAN’s role in trade, securities market harmonization, bond markets and consumer dispute resolution. Convergence of depositor insurance and cross-border insolvency frameworks are discussed. Country studies examine China’s bank resolution framework and shadow banking system and Macau’s banking regulations. There is an analysis of laws pertaining to Indonesian banking, insolvency and taxation, Islamic banking and finance in Malaysia and New Zealand’s Twin Peaks model. FinTech regulation in Hong Kong and Japan is discussed as is venture capital in China and crowdfunding regulations in Taiwan. The Handbook concludes with an analysis of the impact of FinTech on regulatory convergence in Asia.