Logo of Phnom Penh Post newspaper Phnom Penh Post - SERC signs MoU on FinTech rules

SERC signs MoU on FinTech rules

Content image - Phnom Penh Post
The MoU was signed on December 8 between SERC director-general Sou Socheat and Cambo Trust CEO Chan Sophy, at an accompanying ceremony. PHOTO SUPPLIED

SERC signs MoU on FinTech rules

The Securities and Exchange Regulator of Cambodia (SERC) entered into a memorandum of understanding (MoU) with Cambo Trust Plc to “enhance the implementation of the FinTech Regulatory Sandbox in the securities sector”.

The MoU was signed on December 8 between SERC director-general Sou Socheat and Cambo Trust CEO Chan Sophy, at an accompanying ceremony.

Speaking at the event, Socheat identified “securities sector development” as one of the financial industry’s “strategic objectives” which he said is also highly prioritised by the government, as defined in the Financial Sector Development Strategy 2016-2025.

He explained that the SERC places particular attention to the diversification of securities products and markets, as a key driver of strong performance and prosperity in the sector.

The SERC also aims to leverage the rapidly growing fintech landscape in the development of the securities market and broader economy, in step with the Cambodia Digital Economy and Society Policy Framework 2021-2035, he said.

“Today’s MoU signing with Cambo Trust is another action aimed at enhancing the implementation of the FinTech Regulatory Sandbox in the Securities Sector, by strengthening the capacity of the SERC’s officials and studying together the Feasibility on the Development of [a] Fintech Regulatory Sandbox Zone for Securities Business[es] in Cambodia,” he added.

A “regulatory sandbox” is a framework set up by a regulator to allow live testing of innovative propositions – which are generally not fully compliant with existing legal and regulatory requirements – in a controlled yet real-life environment under regulators’ supervision, typically limited by scale, duration and scope.

“This will definitely be an important input, contributing to leveraging fintech for the development of the Cambodian securities market,” Socheat said, stressing that the deal in its current form would only cover research, education and training, and neither the development nor launch of new products or the planned regulatory sandbox regime.

Also at the event, Cambo Trust chief operating officer Kim Jin-seok commented that the next step after the signing would be for his company to begin the feasibility study.

“We wanted the Cambodian market to be placed in the portfolios of global financial players, not only in managing their funds, but also in their actual operation for their worldwide market. That was a starting point.

“The market has been in big turmoil, this is the best opportunity to be placed in [a] unique position. And I have a strong belief that we can achieve it from my experience here.

“[This is] because [of the] well-established financial system [and] fundamentals, collaboration ability with foreign companies, and [a] progressive mind. We are in discussion[s] with several global players in relevant sectors. So we hope this will come out greatly soon,” he said.

Socheat shared that, since issuing a “Guideline on [a] FinTech Regulatory Sandbox in the Securities Sector”, the SERC has received eight applicants to venture into the proposed regulatory sandbox to experiment with innovative financial products and services in the production environment but within a well-defined space and duration.

“The regulatory sandbox will include appropriate safeguards to contain the consequences of failures and maintain the overall safety and soundness of the financial system. All the applications are [currently] under the SERC’s review,” he said.

MOST VIEWED

  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Siem Reap airport to close after new one opens

    After the new Siem Reap-Angkor International Airport (SAI) opens in October, the existing complex serving the northwestern province will be “completely closed”, according to State Secretariat of Civil Aviation (SSCA) spokesman Sin Chansereyvutha. SAI developer Angkor International Airport Investment (Cambodia) Co Ltd (AIAI) last month

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Rare plant fetches high prices from Thai, Chinese

    Many types of plants found in Cambodia are used as traditional herbs to treat various diseases, such as giloy or guduchi (Tinospora cordifolia) or aromatic/sand ginger (Kaempferia galangal) or rough cocklebur (Xanthium Strumartium). There is also a plant called coral, which is rarely grown

  • Ministry using ChatGPT AI to ‘ease workload’; Khmer version planned

    The Digital Government Committee is planning to make a Khmer language version of popular artificial intelligence (AI) technology ChatGPT available to the public in the near future, following extensive testing. On March 9, the Ministry of Post and Telecommunications revealed that it has been using the

  • Cambodia returns 15M Covid jabs to China

    Prime Minister Hun Sen said Cambodia will return 15 million doses of Covid-19 vaccines to China for donation to other countries. The vaccines in question were ordered but had not yet arrived in Cambodia. While presiding over the Ministry of Health’s annual meeting held on