The Global Financial Innovation Network (GFIN) published a report reflecting on the cross-border testing pilot phase, including the achievements and challenges faced. The report also includes next steps and solutions to improve cross-border testing for the next phase. As part of its commitment to be an open initiative, GFIN launched its own website in January 2020. GFIN is committed to further developing the framework of cross-border testing and is now launching several solutions as part of cross-border testing 1.0, or the post-pilot phase. GFIN is launching these new solutions ahead of the planned opening of applications for a new cohort in the first half of 2020.
One of the early priorities for GFIN has been the development of cross-border testing, previously known as the “global sandbox” concept. Out of the 50 GFIN members and observers, 17 regulators joined the GFIN cross-border testing workstream as part of the commitment to developing a framework to facilitate this new type of regulatory cooperation and support for firms. GFIN launched the pilot phase of cross-border testing with the following objectives:
- Explore how regulators could collaborate and facilitate cross-border experimentation in multiple jurisdictions, in real time
- Explore how pilot tests would function and what type of demand there might be from firms to work with regulators in this way
- Learn lessons and make changes to the process, to ensure success of the final testing model
After the initial screening of 44 applications, GFIN announced in April 2019 that the workstream will continue to work with eight firms to develop testing plans for their cross-border trials. At this time, the firms are not yet ready from a GFIN-perspective to launch a full cross-border test as the firms did not develop a testing plan that satisfies each jurisdiction’s criteria (e.g. the firm’s business is still in development and not ready to test; lacking formal partnerships). GFIN is exploring how the workstream members might be able to assist these firms in other ways, either outside the GFIN framework or inviting them to re-engage with GFIN when they are closer to being ready to test. The cross-border testing pilot provided GFIN members with valuable experience and feedback which will help to continue to evolve the framework for future cohorts and ensure that firms are ready for testing.
Related Link: GFIN Updates
Keywords: International, Banking, Insurance, Securities, Regtech, Fintech, Cross-Border Testing, GFIN
Previous ArticleESRB Responds to EIOPA Consultation on 2020 Review of Solvency II
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.