Innovative fintech companies in Australia and the United Kingdom will have more support from regulators to enter the others’ market in what's being called a "world-first" agreement by regulators.

The deal is being seen as one which could speed up the adoption of successful technology from one jurisdiction to another and may help with the spread of robo-advice, platform technology and similar areas. Many Australian companies are already active in the UK market, particularly in the platform area.

In the agreement signed today, the FCA and the Australian Securities and Investments Commission (ASIC) will refer to one another innovative businesses seeking to enter the others’ market. The regulators will provide support to innovative businesses before, during and after authorisation to help reduce regulatory uncertainty and time to market.

The agreement follows the creation of 'Innovation Hubs' at the FCA and ASIC in October 2014 and April 2015, respectively. The Hubs were set up to help businesses with innovative ideas navigate financial regulation, support them through the authorisation process and engage with the regulator. To date the FCA’s Innovation Hub has supported over 200 businesses and the authorisation of 18 businesses. Likewise, ASIC has dealt with over 75 innovative start-ups including the granting of 10 licences.

Christopher Woolard, director of strategy and competition at the FCA, said: “Innovation in financial services isn’t limited by national borders and so it’s important that we support overseas businesses that have new ideas that could benefit British consumers. We also know that many British firms wish to use the UK as a springboard to launch their businesses or products internationally. This agreement – the first of many, we hope – is important. With ASIC, we will reduce the barriers for authorised firms looking to grow to scale overseas and to assist non-UK innovators interested in entering the market we oversee.”

Greg Medcraft, chairman, Australian Securities and Investments Commission, said: ”ASIC is committed to encouraging innovation that has the potential to benefit financial consumers and investors. Since ASIC launched its Innovation Hub last year we have seen a surge in requests by fintech startups seeking assistance about how to navigate the regulatory requirements.

"In particular we have dealt with robo or digital advice, crowd sourced equity funding, payments, marketplace lending and blockchain business models. It is very exciting to observe and clearly some business ideas will want to scale up internationally. We believe this agreement with the FCA will help break down barriers to entry both here and in the UK.”

To qualify for the support offered by the agreement, innovator businesses will need to meet the eligibility criteria of their home regulator’s Innovation Hub. ASIC and the FCA have also committed to share information on emerging market trends and their impact on regulation.

The fintech industries in the UK and Australia are estimated to have revenues of around £6.6bn and £0.7bn a year respectively, with both growing rapidly.