The Global Financial Innovation Network (GFIN) is inviting applications from firms, by December 31, 2020, to test innovative financial products, services, business models, or regulatory technology across more than one country or jurisdiction. Also published is the list of 23 regulators across five continents that are participating in this cross-border testing initiative, which builds on lessons learned from the 2019 cross-border testing pilot of GFIN. Yet another development involves the official recognition of MFSA as a GFIN member. MFSA announced that, in line with its fintech strategy, it will continue to identify and establish links and fintech bridges with different jurisdictions, both in and outside the EU.
Building on the solutions announced in the lessons learned report (including the GFIN website and regulatory compendium) based on the 2019 testing pilot, GFIN has developed several tools and solutions to improve the cross-border testing framework for a new cohort of firms:
- Single-entry application form to simply the process for firms
- Cross-border testing FAQs to help firms understand the process
- An evolved "Regulatory Compendium" clarifying the remit and interests of participating regulators and the types of innovation services available
- An extension of the application window to 9 weeks to allow firms more time to consider and prepare their applications
GFIN is a group of over 60 international organizations committed to supporting financial innovation in the interests of consumers. The GFIN cross-border testing workstream has now grown from 17 regulators to a group of 23 from across five continents. This group has committed to using the valuable experience and feedback gained from the pilot to evolve the testing framework to better support participating firms and regulators alike.
Keywords: International, Europe, Malta, Banking, Insurance, Securities, Fintech, Regtech, GFIN, Cross-Border Testing, Dubai FSA, MFSA
Previous ArticleBCBS Taskforce Holds Workshop on Climate-Related Financial Risks
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.