Regulatory bodies consult on creation of Global Financial Innovation Network
The UK’s Financial Conduct Authority (FCA) has collaborated with 11 regulatory bodies from Europe, the Far East and the US on the creation of a Global Financial Innovation Network (GFIN), building on proposales earlier this year to create a cross-jurisidctional fintech sandbox.
Having launched the world’s first domestic regulatory sandbox in 2016, the FCA in Feburary floated the possibility of a global version, enabling fintech firms to carry out tests in different countries at the same time and helping watchdogs to identify and solve common cross-border problems.
An earlier call for feedback on the idea resulted in 50 responses, mostly favourable, with an emphasis on encouraging cross-border collaboration on a wave of emerging technologies and business models, including artificial intelligence, distributed ledger technology, data protection, regulation of securities and Initial Coin Offerings (ICOs), know your customer (KYC) and anti-money laundering (AML).
Participants in the programme include Abu Dhabi Global Markets, Autorité des marchés financiers (Québec), Australian Securities & Investments Commission, Central Bank of Bahrain, United States Bureau of Consumer Financial Protection, Dubai Financial Services Authority, Financial Conduct Authority, Guernsey Financial Services Commission, Hong Kong Monetary Authority, Monetary Authority of Singapore, Ontario Securities Commission and the Consultative Group to Assist the Poor (CGAP).
Together they are launching a consultation on the role the GFIN should play in delivering its objectives, including the tools it will use.
As part of the consultation, the group is seeking views on the mission statement for the GFIN, its proposed functions, and where it should prioritise activity.
Christopher Woolard, FCA executive director of strategy and competition and board member commented: “The creation of the Global Financial Innovation Network (GFIN) is an important next step for organisations like ours who are actively engaged in understanding and harnessing the benefits of innovation in financial services for consumers, while managing the potential harm.
“The establishment of the GFIN can help share the experiences and knowledge from across different markets, while also providing a platform for innovative firms wishing to scale their propositions via testing in multiple countries.”
He says the group is also keen to hear from other interested regulators or related organisations who wish to get involved.
The working group is asking for feedback on the consultation questions by 14 October 2018.