Last month, the UK’s financial regulator – the Financial Conduct Authority (FCA) – announced that it will be joining forces with 11 other financial regulators and related organisations around the globe to form a Global Financial Innovation Network (GFIN). This follows on from the FCA’s initial consultation in February 2018 proposing a ‘global sandbox’ of financial innovation, a proposal which received many positive responses and offered feedback on key areas such as regulatory co-operation, speed to market, governance, and emerging technologies / business models.
The regulators taking part include the Hong Kong Monetary Authority (HKMA), the Abu Dhabi Global Market (ADGM), and the Monetary Authority of Singapore (MAS), as well as organisations from Bahrain, Canada, and the global Consultative Group to Assist the Poor (CGAP).
Per the FCA announcement: “The network will seek to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. It will also create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.”
A working group has been formed and has put out an open call for feedback on the proposed mission statement of GFIN, as well as on what its priorities as a global network should be. Other financial regulators and related groups are also invited to get involved.
FCA Executive Director of Strategy and Competition Christopher Woolard commented on the expected benefits of GFIN: “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.”
The deadline to provide feedback on the consultation is 14 October 2018, after which the working group will determine next steps.
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