Global Financial Innovation Network Launched
Hopes to boost Fintech growth
14 December 2018
The Financial Conduct Authority (FCA) has, in collaboration with 11 other financial regulators and organisations (detailed below) announced the launch of the Global Financial Innovation Network (GFIN). The launch follows a February 2018 consultation and proposal to create a "global sandbox" in this space.
Commenting on the launch of GFIN (which also marks the launch of the associated consultation paper), Christopher Woolard, the FCA's Executive Director of Strategy and Competition stated:
“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”.
The consultation paper, which sets out 10 questions for interested parties to respond to, is primarily aimed at "innovative financial services firms, financial services regulators, technology companies, technology providers, trade bodies, accelerators, academia, consumer groups and other stakeholders keen on being part of the development of the GFIN".
The paper sets out broad aims for the GFIN as well as a proposed mission statement - both of which are open to comment by interested parties.
- to act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models;
- to provide a forum for joint policy work and discussions; and
- to provide firms with an environment in which to trial cross-border solutions (business to consumer, or business to business).
Proposed mission statement
"The GFIN is a collaborative policy and knowledge sharing initiative aimed at advancing areas including financial integrity, consumer wellbeing and protection, financial inclusion, competition and financial stability through innovation in financial services, by sharing experiences, working jointly on emerging policy issues and facilitating responsible cross-border experimentation of new ideas".
The GFIN see this being achieved through three main complementary functions
- Network of regulators – a community of regulators and related organisations that promotes information and knowledge sharing on emerging innovation trends, their own local experimentation, tests and initiatives, and the provision of accessible contact information for firms.
- Joint policy work and regulatory trials – collaboration between regulators on key policy questions to inform approach taken by regulators, with the view to support the work of standard setting bodies. This could also include regulators collaborating on RegTech solutions.
- Cross-border trials – support companies in conducting trials across multiple jurisdictions to allow them to navigate multi-jurisdictional regulatory issues, both in the B2B and B2C space.
Responses to the consultation paper should be submitted by 14 October 2018.
1. Abu Dhabi Global Market (ADGM)
2. Autorité des marchés financiers (AMF)
3. Australian Securities & Investments Commission (ASIC)
4. Central Bank of Bahrain (CBB)
5. Bureau of Consumer Financial Protection (BCFP, USA)
6. Dubai Financial Services Authority (DFSA)
7. Financial Conduct Authority (FCA, UK)
8. Guernsey Financial Services Commission (GFSC)
9. Hong Kong Monetary Authority (HKMA)
10. Monetary Authority of Singapore (MAS)
11. Ontario Securities Commission (OSC, Canada)
12. Consultative Group to Assist the Poor (CGAP)