FCA on Next Steps for Cross-Border Testing Pilot with Fintech Firms

Firms that develop a testing plan satisfactory to each jurisdiction’s criteria will take part in the pilot testing phase. Some time toward the end of second quarter, the names of firms formally selected for the cross-border testing pilot will be announced. Every regulator participating in the pilot was the subject of at least one application. Each regulator has considered whether a proposed test meets its individual screening criteria, areas of interest, and their ability to support the activity. Of those applications that did not meet the eligibility criteria for testing, GFIN members will engage in further discussions on other types of potential support, where relevant. Additionally, several applications have been determined by some regulators to not need sandbox in their jurisdictions to proceed to testing. Regulators are only responsible for the applications relevant to them. The selected firms include Alphapoint, Ascent RegTech, ATLANT, Coinvestion, DACX, Onfido, Starling Trust, and Tradle.  FCA has also disclosed a description of the proposed test for each firm, along with the regulators involved in each test. 

The proposed test for Ascent RegTech involves work on an artificial intelligence driven regtech solution that automatically maps a customer’s specific regulatory obligations and ongoing rule changes, while enabling end-to-end compliance management. The product helps firms see similarities and differences in regulatory obligations across regulators and countries. Regulators that will be involved in this proposed test are Australian Securities & Investments Commission (ASIC), Autorité des marchés financiers (AMF Québec), DFSA, FCA, HKMA, and Ontario Securities Commission (OSC). 

Related Links

• FCA Update on GFIN
• HKMA Press Release

Keywords: Europe, UK, Banking, Insurance, Securities, Regtech, Fintech, GFIN, Cross-Border Testing, Pilot Testing, Regulatory Sandbox, FCA