The Financial Conduct Authority (FCA) has, in collaboration with 11 financial regulators and related organisations, created the Global Financial Innovation Network (GFIN).
The network, which builds on the FCA’s earlier proposal to create a ‘global sandbox’, will seek to provide a more efficient way for innovative firms to interact with regulators and will also create a new framework for co-operation between financial services regulators on innovation related topics.
The GFIN is also launching a consultation on the role it should play in delivering its objectives, including the tools it will use. This consultation sets out the three main functions of the GFIN: to act as a network of regulators to collaborate and share experience of innovation in respective markets; to provide a forum for joint policy work and discussions; and to provide firms with an environment in which to trial cross-border solutions.
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.
Christopher Woolard, FCA executive director of strategy and competition and board member, commented: “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.”
Today’s announcement follows an initial consultation on the idea of a ‘global sandbox’ in February 2018 and provides an update on the next steps of the project. 50 responses were received to the earlier paper and were positive about the idea of regulators collaborating on this topic.
The working group is asking for feedback on the consultation questions by 14 October 2018 and the working group will assess feedback and agree on next steps in the autumn.