Money 20/20 Asia: Policymakers must give companies ‘room to grow’

Financial policymakers must give companies room to grow, if they are to appeal to the next generation of financial companies and products.

That’s the warning from senior leaders at Money 20/20 Asia in Bangkok, who also heaped praise on regulators in Hong Kong, Singapore, and Switzerland for enabling the development of innovative financial products.

Speaking at Money 20/20 Asia, AMINA Bank’s chief executive officer for the APAC region, Amy Yu, said outward-looking regulators who are giving companies “the room to grow and experiment” will facilitate a compliant, safe environment that benefits everyone.

Yu – a career banker previously at JP Morgan, Nomura and UBS – applauded regulators keen to encourage experimentation “up to a notional amount” or a percentage threshold linked to a company’s size.

She said awarding “limited licences to those with experience” was good for competition and innovation, adding that AMINA Bank has benefited from this approach in Hong Kong. Last year, the regulator awarded the group a licence to deal in securities, including virtual assets such as OTC derivatives and structured products.

“Almost nowhere is regulating derivative activity with crypto assets,” she said. “This is an example of a regulator giving someone room to grow in a new space.

“The regulator was comfortable given our parent company’s track record and the fact that the local Hong Kong executive team has the experience.”

Former Goldman Sachs director, Natsuda Bhukkanasut – now CEO of Investree Thailand – underscored the importance of regulators working with businesses to build a landscape that fosters new ways of thinking.

She added: “When regulators collaborate on new ideas it opens doors. Allowing us to stay at the policy table is necessary.

The point was supported by Grace Chong, head of financial regulatory SG at Gibson Dunn and Crutcher, who said regulators must appreciate that financial customers are increasingly more open minded when it comes to choosing their preferred product providers.

She explained: “Today’s customers are global. They continue to go to where their hearts’ desire. For jurisdictions to remain competitive, they [policymakers] will have to think smartly about the activities that come within their scope.”