Around 11 regulators and related organisations have clubbed together to form a ‘global sandbox’ project aimed at improving communication between fintech companies and regulators, as well as making it smoother for firms to navigate between various jurisdictions.
Called the Global Financial Innovation Network (GFIN), the platform will also create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches, a Financial Conduct Authority (FCA) statement said.
The organisations involved in the GFIN include the UK’s FCA, US Bureau of Consumer Financial Protection, the Australian Securities & Investments Commission, Hong Kong Monetary Authority as well as the Monetary Authority of Singapore.
FCA Executive Director of Strategy Christopher Woolard said: “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 collaborative effort also announced the launch of a consultation on the role the GFIN should play in delivering its objectives.
The consultation sets out the main functions of the GFIN, which include acting as a network of regulators to collaborate and share experience of innovation in respective markets, providing a forum for joint policy work and discussions and also providing firms with an environment in which to trial cross-border solutions.