"The establishment of the GFIN can help share the experiences and knowledge from across different markets, while also providing a platform for innovative firms"
The FCA, along with 11 financial regulators and related organisations, has announced the creation of the Global Financial Innovation Network, building on the FCA’s proposal earlier this year to create a ‘global sandbox’.
The network will seek to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. It will also create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.
The collaborative effort, involving regulators from around the world, is also today launching a consultation on the role the GFIN should play in delivering its objectives, including the tools it will use.
The group is seeking views on the mission statement for the GFIN, its proposed functions, and where it should prioritise activity.
Today’s announcement follows an initial consultation on the idea of a ‘global sandbox’ in February 2018 and provides an update on the next steps of the project. 50 responses were received to the earlier paper and were positive about the idea of regulators collaborating on this topic.
Respondents cited one of the main advantages for the global sandbox could be reducing the time it takes to bring ideas to new international markets.
A wide range of topics and subject matters were highlighted in the feedback, particularly those with notable cross-border application. Among issues highlighted were artificial intelligence, distributed ledger technology, data protection, regulation of securities and Initial Coin Offerings, know your customer and anti-money laundering.
Christopher Woolard, executive director of strategy and competition at the FCA, commented: “The creation of the Global Financial Innovation Network 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.”