FCA to create fintech ‘sandbox’ with global regulators
The UK’s Financial Conduct Authority (FCA) announced on Tuesday the creation of the Global Financial Innovation Network (GFIN) in response to the regulator’s pledge to build a global fintech sandbox.
Such a network would create an environment for technologically innovative companies, such as blockchain developers, artificial intelligence and cloud computing firms, to interact with peers and regulators.
Navigating legal frameworks
By involving regulators around the world, companies can find help navigate between the legal frameworks between countries as they seek to scale up new ideas, the FCA said.
“The creation of the Global Financial Innovation Network 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,” said Christopher Woolard, FCA director of strategy.
Tuesday also established the launch of a consultation to set out the main functions of the GFIN. They are to:
- Act as a network of regulators to collaborate and share experience of innovation in respective markets
- Provide a forum for joint policy work and discussions
- Provide companies with an environment in which to trial cross-border solutions
“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,” added Woolard.
Initial consultations on the idea of a global sandbox began in February with a white paper that provoked 50 responses that were broadly positive about regulatory collaboration. The working group is asking for feedback on the consultation questions by 14 October.
The FCA said that over the course of the next two months, the group will engage with interested parties across the different jurisdictions involved in the project.