July 9, 2019
Governor of the State of New York, Andrew M. Cuomo, and Israels' three financial regulators: Supervisor of Banks at the Bank of Israel, Hedva Ber, Head of Capital Markets, Insurance and Savings Authority, Moshe Bareket, and Chairwoman of Israel Security Authority, Anat Guetta, today announced an agreement between the New York State Department of Financial Services and Israel's regulators to encourage and enable cross-border innovation in financial services technology ("FinTech"). The purpose of the agreement is to encourage FinTech innovation in New York and Israel by providing support to FinTech companies, and to enable information sharing regarding this fast-developing domain.
"As the financial capital of the world, New York must continue to lead by promoting and encouraging the growth of pioneering financial services products that today's interconnected world demands," said Governor Cuomo. "New York and Israel are both centers of innovation and given our close friendship there are many mutual benefits to a partnership in the emerging FinTech market. New York is proud to partner with Israel through this agreement and to work together to ensure that unnecessary barriers to FinTech development are removed to support current and future innovation. The relationship between New York and Israel will be amplified and expanded through this agreement, which will ease the ability of entrepreneurs and innovators to work in both countries."
Supervisor of Banks, Hedva Ber, said: "Promoting technological advancement and innovation in our banking system is one of the strategic goals of the Bank of Israel. I thank my colleagues and the partners from New York for this cooperation, which will support our ability to be in the frontier of technology while making sure risks of all types are managed according to best international practices"
Head of Capital Markets, Insurance and Savings Authority, Moshe Bareket, said: " As in-charge regulator of non-bank Fintech operations in Israel, the Capital Market Insurance and Savings Authority is welcoming cooperation and joint work with other global and local regulators. I am sure that we will have fruitful and constructive exchanges on Fintech with our New York colleagues which will be mutually beneficial."
Chairwoman of Israel Security Authority, Anat Guetta, said: "Israel Securities Authority has defined as a strategic goal to promote financial innovation, which includes the development and refinement of the field of Fintech in Israel. We have established a financial innovation hub at the ISA, which provides regulatory support to Fintech companies and enables us to learn about the supervision and regulation required to protect investors' interests, and at the same time, keeping the necessary space to the accelerated technological developments. This MoU that we have signed with NY is in addition to bilateral MoUs we recently signed with France and Switzerland and our joining the Global Financial Innovation network (GFIN). These MoUs give Fintech companies the possibility to receive regulatory guidance that they need to comply with regulation in Israel and the world markets".
The Memorandum of Understanding ("MOU") announced today encourages initiatives in FinTech that promote competitiveness and innovation in financial services through the following:
• Innovation Referrals. Regulators will refer FinTech innovators to each other, which can improve speed to market.
• Expertise Sharing. New York and Israeli regulatory staff will give presentations and conduct training sessions to share expertise and knowledge.
The MOU signed today demonstrates New York's continuing commitment to supporting the growth of financial innovation and recognizes the importance of partnering with leaders in FinTech regulation, such as Israel.