United States

Commodity Futures Trading 

Commission

South African

Reserve Bank

November 2, 2020 

STATEMENT OF INTENT ON COOPERATION AND THE EXCHANGE

OF INFORMATION ON FINANCIAL TECHNOLOGY INNOVATION

In view of emerging technology in financial markets and services, the United States Commodity 

Futures Trading Commission (“CFTC”) and the South African Reserve Bank (“SARB”) (each 

an “Authority” and, together, the “Authorities”) intend to cooperate and share information with 

respect to financial technology (“FinTech”).

The Authorities have established the following (each an “Innovation Function” and, together, 

the “Innovation Functions”):

For the CFTC: “LabCFTC” is an office within the CFTC focused on facilitating responsible

FinTech innovation while fostering open, transparent, competitive, and financially sound 

markets to serve the public interest. The CFTC established LabCFTC to advance policy 

and regulation in financial innovation, facilitate dialogue between innovators and those 

within the CFTC on financial and technological innovations, and educate stakeholders on 

financial technology and innovation in the financial markets on how innovations are being 

used. 

For the SARB: “Fintech Unit” and Programme is an office within SARB focused on 

strategically assessing the emergence of FinTech in a structured and organised manner, and 

to consider its regulatory and policy implications. The main goal of the SARB Fintech Unit

is to assess innovations in financial services and to assist regulatory authorities in 

formulating and adopting appropriate regulatory positions and frameworks in response to 

these emerging innovations, whilst ensuring the efficient functioning of the financial system 

and maintaining financial stability.

The purpose of this statement of intent (“Statement”) is to initiate cooperation and information 

sharing between the Innovation Functions of each Authority. 

This Statement should be interpreted and implemented in a manner that is permitted by, and 

consistent with, the legal requirements applicable to each Authority. This Statement does not 

create any legally binding obligations or confer any rights, including any legally enforceable 

South African Reserve Bank 
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right or ability of any person directly or indirectly to obtain, suppress, or exclude any 

information or to challenge the execution of a request for information under the Statement. This 

Statement does not modify or supersede domestic laws or regulations, nor does it limit or 

condition the discretion of an Authority in any way in the discharge of its regulatory 

responsibilities or prejudice the individual responsibilities or autonomy of either Authority. 

Each Innovation Function intends to act in a manner consistent with the understandings in 

Paragraphs 1-6 and will use and treat any non-public information received pursuant to this 

Statement in the manner prescribed in Paragraphs 7-8: 

1. Support – Each Innovation Function may provide support to an entity or individual 

(“Innovator Business”) that includes, but is not limited to: (a) assistance regarding 

understanding the regulatory framework in the relevant Authority’s jurisdiction and the 

framework’s potential application to the Innovator Business; (b) assistance in understanding 

regulatory issues or ambiguity that the Innovator Business has identified; and (c) guidance 

with respect to any applicable authorization process of the relevant Authority for licensing, 

registering, approving, or otherwise making an Innovator Business subject to the 

Authority’s regulatory requirements (“Authorization”). 

2. Referrals – An Authority’s Innovation Function may refer an Innovator Business to the 

other Authority’s Innovation Function where the Innovator Business: (a) meets the 

referring Authority’s criteria for referral; and (b) consents in writing to disclosure to the 

other Authority of information about the Innovator Business. Referrals should include 

information demonstrating that the Innovator Business seeking to operate in the receiving 

Authority’s jurisdiction meets, or would meet, the referring Authority’s criteria for referral. 

Each Innovation Function should notify the other Innovation Function of any material 

changes to an Authority’s criteria for referral.

The Innovation Function receiving the referral should offer support to the Innovator 

Business consistent with the support outlined in Paragraph 1. An Innovator Business that 

receives such support may or may not ultimately meet an Authority’s requirements for 

Authorization. In providing support, neither the Innovation Function nor the Authority is 

expressing an opinion about whether an Innovator Business ultimately will meet the 

requirements for Authorization. 

3. Innovation Learning – The Innovation Functions intend to organize and to invite each other 

to observe in, and to consider hosting jointly where permitted, events, proofs of concept, 

trials, or innovation competitions supported by sandboxes, accelerators, launchpads, or 

similar endeavors related to FinTech.

4. Information Sharing – Subject to applicable domestic laws and regulations and where 

appropriate, the Innovation Functions intend to share information related to FinTech. Such 

information may include, but is not limited to: (a) emerging trends and developments 

pertaining to FinTech; (b) innovations in FinTech and regulatory issues pertaining to such 

innovations; (c) experiences with and best practices in engaging with FinTech innovation; 

and (d) activities of domestic and international organizations or bodies that promote 

innovation in FinTech. 

To the extent possible, any request for information should be made in writing and should 

specify the following: (a) the information sought by the Innovation Function; (b) a general 
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description of the matter that is the subject of the request; (c) the purpose for which the 

information is sought; and (d) the desired time period for reply and, where appropriate, any

urgency thereof. The Innovation Functions anticipate that requests will be made in a 

manner that is consistent with the goal of minimizing administrative burdens.

5. Periodic Meetings – Representatives of the Innovation Functions intend to meet 

periodically, as appropriate, to discuss items listed in Paragraph 4 above. Such meetings 

may be conducted by conference call or on a face-to-face basis, as appropriate.

6. Transmittal: Requests, referrals, responsive information, and any subsequent 

communication between Innovation Functions may be transmitted electronically. Any 

electronic transmission should use means that are appropriately secure in light of the 

confidentiality of the information being transmitted. An Innovation Function should mark 

any non-public information transmitted under this SOI: “Confidential – Provided under 

Statement of Intent between the CFTC and the SARB”.

7. Use: An Innovation Function may use non-public information obtained from the other 

Innovation Function under this Statement solely for the purposes for which the information 

was provided. If an Innovation Function wishes to use non-public information furnished 

under this Statement for any other purpose, the Innovation Function first must consult with, 

and obtain the prior written consent of, the other Innovation Function for the intended use. 

If consent is denied, the Innovation Functions will consult to discuss the reasons for 

withholding approval of such use and the circumstances, if any, under which the intended 

use might be allowed. The restrictions in this paragraph do not apply to information 

obtained by an Innovation Function directly from an Innovator Business.

8. Confidentiality: The following provisions apply to the treatment of non-public information:

(a) Each Innovation Function will keep confidential, to the extent permitted by law, all nonpublic information shared under this Statement, including the contents of referrals and 

requests, and any other matters arising under this Statement. In the event of 

discontinuation of this Statement, non-public information received under this Statement

will continue to be used and treated in the manner prescribed in Paragraphs 7 and 8. 

(b) Each Innovation Function must obtain the prior written consent of the other Innovation 

Function before sharing non-public information received under this Statement with any 

non-signatory to this Statement. The Innovation Function whose consent is being 

sought will take into account the level of urgency of the request and respond in a timely 

manner. If consent is denied, the Innovation Functions will consult to discuss the 

reasons for withholding approval of such disclosure and the circumstances, if any, under 

which the intended disclosure might be allowed. 

(c) To the extent possible, each Innovation Function intends to notify the other Innovation 

Function prior to complying with any legally enforceable demand for non-public 

information furnished under this Statement. When complying with the demand, the 

Innovation Function intends to assert all appropriate legal exemptions or privileges with 

respect to such information as may be available.

(d) The Innovation Functions intend that the sharing or disclosure of non-public 

information, including deliberative and consultative materials, such as written analysis, 

opinions, or recommendations relating to non-public information that is prepared by or 
o n behalf of an Innovation Function, pursuant to the te rms of this Statement, will not 

constitute a waiver of priv ilege or confidentiality of such non-public information. 

This Statement may be amended in writing with the consent of the Authorities referred to in 

Paragraph I; may be superseded, as appropriate, by a more forma l cooperation a rrangement 

ente red into by the Authorities; or may be discontinued when an Innovation Function provides 

30-days' written notice to the other Innovation Function of its inte ntion to discontinue 

participation in the Statement. 

This Statement is sig ned in duplicate. 

Chairman & Chief Executive 

U.S. Commodity Futures Trading Commission 

Date~ ';;:) O;;l 0 

Contact Persons: 

Chief Innovation Officer 

Director, LabCFTC 

Phone: + 1-202-418-6079 

Email: LabCFTC@cftc.gov 

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Signed by: Rashad Cassim 

Signed at: 2020-10-31 11 :22:04 +02:00 

R : Witnessing Rashad Cassim 

Dr Rashad Cassim 

Deputy Governo r 

South African Reserve Bank 

Date: 30/1 0/20 

Dr Ari f Ismail 

Head, Fintech Unit and Programme 

Phone: +27-1 2-399-7637 

Email: Arif.lsmail@ res bank.co.za