OCC proposed an Innovation Pilot Program for testing of innovative activities in the financial sector. The program would be voluntary and designed to provide eligible entities with regulatory input early in the testing of innovative activities that could present significant opportunities or benefits to consumers, businesses, financial institutions, and communities. Comment period for this proposal expires on June 14, 2019.
Entities eligible for the proposed program would be OCC-supervised financial institutions, including those engaging a third party to offer the innovative product, service, or process. Entities may propose a pilot individually or as a collaborative effort such as a consortium or utility. To be eligible, entities seeking to participate in the program should demonstrate how OCC involvement in the pilot is appropriate and how the proposed activity has the potential to achieve one or more of the following:
- Meet the evolving needs of consumers, businesses, and communities
- Promote financial inclusion, fair access, and fair treatment of consumers or small businesses
- Improve the efficiency or effectiveness of bank processes, operations, or the provision of financial services
- Mitigate significant risks to individual banks or the overall banking system
- Advance risk management, security, and regulatory compliance
The program generally provides for OCC engagement in a pilot lasting no less than three months and no greater than 24 months. The duration of the pilot will be assessed on a case-by-case basis and should be commensurate with the nature and objectives of each proposed pilot as well as with the related risks. Within the program, OCC will consider tailored regulatory tools on a case-by-case basis, based on the facts and circumstances presented during the evaluation process. OCC will consider using these tools only when their use would not violate existing laws, involve an unsafe or unsound practice, or cause an unsafe or unsound condition.
- News Release
- Innovation Pilot Program (PDF)
- FAQs on Innovation Pilot Program (PDF)
- Innovation Initiatives of OCC
Comment Due Date: June 14, 2019
Keywords: Americas, US, Banking, Fintech, Regtech, Innovation Pilot Program, Testing Pilot, OCC
Previous ArticleHKMA Publishes FAQs on IRRBB Framework in April 2019
BoE updated the known issues document for the statistical reporting Forms AS and FV.
EBA updated the report on the implementation of selected COVID-19 policies.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.
MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.
HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.
The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.
FASB issued a new Accounting Standards Update (2020-06) to improve financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity.