- European Parliament votes to adopt an agreement reached between the EU institutions regarding the review of the European system of financial supervision
- S&P reviews European run-off market
- PRA issues Policy Statement on approaches to managing the financial risks from climate change
- Confused.com/Willis Towers Watson latest survey indicates UK comprehensive car insurance premiums down compared with a year ago
- Horwich Farrelly highlights the potential pitfalls for insurance providers focusing too heavily on claims acceptance league tables
- BIBA appoints Magenta to provide its members with a scheme to help customers protect themselves against Escape of Water(EOW) in the home
- Medscheme creates modern decision platform which reviews some 400,000 claim lines per day powered by a FICO solution expired
- InsurData secures a further $3m funding from a group of investors expired
- Lemonade raises £300m in latest investment round expired
- Portabl picked by the Plug and Play innovation platform to join its InsurTech Batch of innovative companies expired
- Sapiens announces upgrade to IDITSuite solution expired
- BIBA appoints Blundell to a new position as Head of General insurance expired
8th August 2018
FCA announces creation of Global Financial Innovation Network(GFIN) to create a "global sandbox"
The Financial Conduct Authority(FCA) has, in collaboration with 11 financial regulators and related organisations, today announced the creation of the Global Financial Innovation Network(GFIN), building on the FCA’s proposal earlier this year to create a ‘global sandbox’.
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.
The collaborative effort, involving regulators from around the world, is also launching a consultation on the role the GFIN should play in delivering its objectives, including the tools it will use.
The consultation sets out the three main functions of the GFIN:
-act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models;
-provide a forum for joint policy work and discussions; and
-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. The group is also keen to hear from other interested regulators or related organisations who wish to get involved.
Christopher Woolard, FCA executive director of Strategy and Competition and Board member comments “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 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. Key themes to emerge in the feedback were:
-Regulatory co-operation: Respondents were supportive of the idea of the initiative providing a setting for regulators to collaborate on common challenges or policy questions firms face in different jurisdictions.
-Speed to market: Respondents cited one of the main advantages for the global sandbox could be reducing the time it takes to bring ideas to new international markets.
-Governance: Feedback highlighted the importance of the project being transparent and fair to those potential firms wishing to apply for cross-border testing.
-Emerging technologies/business models: A wide range of topics and subject matters were highlighted in the feedback, particularly those with notable cross-border application. -Among issues highlighted were artificial intelligence, distributed ledger technology, data protection, regulation of securities and Initial Coin Offerings(ICOs), know your customer(KYC) and anti-money laundering(AML).
The working group is asking for feedback on the consultation questions by 14th October. Over the course of the next two months, the group will engage with interested parties across the different jurisdictions involved in the project. In the Autumn, the working group will assess feedback and agree on next steps.
FCA Trends(156 articles)