Global Financial Regulators To Develop Financial Innovation Networkbr>
The UK Financial Conduct Authority (FCA) is collaborating with 11 global financial regulators and related organizations to create a platform that will provide a more efficient way for innovative firms to interact with regulators.
Called the Global Financial Innovation Network (GFIN), it will act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models. It will also provide a forum for joint policy work and discussions, and provide firms with an environment in which to trial cross-border solutions.
Current GFIN members include the 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 Consultative Group to Assist the Poor (CGAP).
The GFIN may be overseen by a steering group made up of a smaller number of members. The steering group would be chaired by one of the members . The role of the chair is envisioned to be that of a coordinator.
“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,” said Christopher Woolard, FCA Executive Director of Strategy and Competition and Board member. “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.”
The GFIN builds on the FCA’s proposal in February of this year to create a “global sandbox.” According to the FCA, 50 responses were received to the earlier paper and were positive about the idea of regulators collaborating on this topic. Issues highlighted in the feedback were artificial intelligence (AI), distributed ledger technology (DLT), data protection, regulation of securities and initial coin offerings (ICO), know your customer (KYC) and anti-money laundering (AML).
The FCA working group is requesting feedback from the GFIN members by October 14. Over the course of the next two months, the group will engage with interested parties across different jurisdictions involved in the project. The working group will assess feedback and agree on next steps in autumn.