The Global Financial Innovation Network (GFIN), a network of 29 regulatory bodies chaired by the UK’s Financial Conduct Authority (FCA), has opened applications for its cross-border testing pilot, the regulator reported in a statement.
Companies that have been accepted will be able to make use of the cross-border innovation sandbox to test their products, services and business models across more than one jurisdiction.
However, in order to participate in the six-month long pilot phase, which is expected to commence in the second quarter of 2019, firms must meet the regulators’ application requirements in all the jurisdictions in which they wish to test.
The FCA has reminded interested firms to note whether a particular regulator is the relevant authority for the proposed activity before applying to test in their jurisdiction.
Furthermore, the GFIN intends to create a new framework for co-operation between financial services regulators on innovation related topics, allowing them to share different experiences and approaches.
The news comes almost one year after the FCA, in collaboration with 11 other regulators, proposed the creation of a global regulatory sandbox.
The regulator received positive feedback through 99 responses from 26 jurisdictions to its GFIN consultation paper, reassuring the regulator’s ability to find widespread support for its mission to encourage global innovation.
More notably, the FCA has a strong track record with its domestic sandbox, with 89 companies using its test under four different cohorts, and it recently received applications for its fifth cohort.
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