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Thursday, July 16, 2020
Algoz Trading

    American Regulators Join UK-Initiated Global Financial Innovation Network

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    The Securities and Exchange Commission (SEC),  Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC), have joined the Global Financial Innovation Network (GFIN).

    The Global Financial Innovation Network (GFIN) was formally launched in January 2019 by an international group of financial regulators and related organizations

    The GFIN is a network of over 50 organisations committed to supporting financial innovation in the interests of consumers who 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. This includes a pilot for firms wishing to test innovative products, services or business models across more than one jurisdiction.

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    It also aims to create a new framework for co-operation between financial services regulators on innovation-related topics, sharing different experiences and approaches.

    GFIN members currently participating in cross-border trials: 

    • Australian Securities & Investments Commission (ASIC)
    • Central Bank of Bahrain (CBB)
    • Bermuda Monetary Authority (BMA)
    • British Columbia Securities Commission (BCSC) (British Columbia, Canada)
    • Ontario Securities Commission (OSC) (Ontario, Canada)
    • Autorité des marchés financiers (AMF) (Québec, Canada)
    • Hong Kong Monetary Authority (HKMA)
    • Hong Kong Securities and Futures Commission (HKSFC)
    • Magyar Nemzeti Bank (Central Bank of Hungary)
    • Astana Financial Services Authority (AFSA) (Astana, Kazakhstan)
    • Bank of Lithuania (LB)
    • Monetary Authority of Singapore (MAS)
    • Abu Dhabi Global Market (ADGM)
    • Dubai Financial Services Authority (DFSA)
    • Financial Conduct Authority (FCA, UK) [GFIN Chair]
    • Guernsey Financial Services Commission (GFSC)
    • Jersey Financial Services Commission (JFSC)

    Key themes include:

    • Regulatory co-operation: Respondents were supportive 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 applications. 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).

    U.S. financial regulators have taken proactive steps in recent years to enhance regulatory clarity and understanding for all stakeholders and promote early identification of emerging regulatory opportunities, challenges, and risks.

    Participation in the GFIN furthers these objectives and enhances the agencies’ abilities to encourage responsible innovation in the financial services industry in the United States and abroad. By promoting knowledge-sharing on innovation in financial services, U.S. members of GFIN will seek to advance financial and market integrity, consumer and investor protection, financial inclusion, competition, and financial stability. Participation in international organizations such as this helps U.S. financial regulators represent the interests and needs of the nation and its financial services stakeholders.

    The agencies join 46 other financial authorities, central banks, and international organizations from around the globe that are members of the GFIN to foster greater cooperation among financial authorities on a variety of innovation topics, regulatory approaches, and lessons learned.


    Also published on Medium.