The Financial Conduct Authority (FCA) has, in collaboration with 11 other financial regulators and related organisations, announced the creation of the Global Financial Innovation Network (GFIN), building on the FCA’s proposal to create a ‘global sandbox’.
The regulator has stated the network will seek to provide a more efficient way for innovative firms to interact with regulators, allowing them to navigate between countries as they look to scale new ideas. It is also hoped that this network will create a new framework for co-operation between financial services regulators on innovation related topics, allowing the authorities to share experiences and approaches.
A consultation on the role the GFIN should play in delivering its objectives was also released, with its three main functions being; a network for regulators to share practices and experience, to serve as a forum for joint policy work and discussion, and to provide firms with an environment in which they can trial cross-border solutions.
Furthermore, as part of the consultation, the group is seeking views on the mission statement for the GFIN, its proposed functions and where it should prioritise activity, while also urging other interested regulators and related organisations to get in contact, should they wish to be involved.
Commenting on the collaboration, FCA executive director of strategy and competition Christopher Woolard said: “The creation of the Global Financial Innovation Network (GFIN) is an important next step for organisations like ours who are actively engaged in understanding and harnessing the benefits of innovation in financial services for consumers, while managing the potential harm.
“The establishment of the GFIN can help share the experiences and knowledge from across different markets, while also providing a platform for innovative firms wishing to scale their propositions via testing in multiple countries.”
Those involved in the GFIN are asking for feedback on the consultation questions by 14 October 2018. The group has said that it will engage with interested parties across the different jurisdictions involved in the project over the next two months.
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