FCA Announces Creation of Global Financial Innovation Network
FCA has, in collaboration with 11 financial regulators and related organizations announced the creation of the Global Financial Innovation Network (GFIN), building on its proposal earlier this year to create a global sandbox. The group also launched a consultation on the role the GFIN should play in delivering its objectives, including the tools it will use. The consultation closes on October 14, 2018.
As part of the consultation, the group is seeking views on the mission statement for GFIN, its proposed functions, and where it should prioritize activity. The group encourages innovative financial services firms, financial services regulators, technology companies, technology providers, trade bodies, accelerators, academia, consumer groups, and other stakeholders that are keen on being part of the development of the GFIN to respond to the questions in the paper. The consultation sets out the three main functions of the GFIN:
- Act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models
- Provide a forum for joint policy work and discussions
- Provide firms with an environment in which to trial cross-border solutions
The current GFIN members are Abu Dhabi Global Market (ADGM), Autorité des marchés financiers (AMF), Australian Securities & Investments Commission (ASIC), Central Bank of Bahrain (CBB), Bureau of Consumer Financial Protection (BCFP, USA), Dubai Financial Services Authority (DFSA), Financial Conduct Authority (FCA, UK), Guernsey Financial Services Commission (GFSC), Hong Kong Monetary Authority (HKMA), Monetary Authority of Singapore (MAS), Ontario Securities Commission (OSC, Canada), and Consultative Group to Assist the Poor (CGAP). GFIN is designed to be an inclusive community of financial services regulators and related organizations. The eventual membership of the GFIN that take this project forward is still to be determined. The above organizations are committed to exploring the idea further, but the consultation process will help inform any future involvement. Similarly, regulators not named may decide to get involved in the future or after the formal launch of GFIN. The current consultation follows a proposition document published by the UK FCA in February 2018 on the idea of a “global sandbox” and provides an update on the next steps of the project. FCA had received 50 responses to its February consultation and the overall feedback to the consultation was positive.
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.
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Keywords: International, UK, Banking, Securities, GFIN, Regulatory Sandbox, Regtech, Suptech, FCA
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