The Global Financial Innovation Network (GFIN), an initiative created by a number of international regulators and related organisations, has launched operations.
GFIN is a network of 29 organisations committed to supporting consumers, with a particular focus on improving interactions between companies and regulators to ease navigation between countries they look to scale into. This includes a pilot for firms wishing to test products, services, business models in multiple jurisdictions.
Another aim of this group is to establish a new framework for co-operation between financial services regulators around innovation by sharing experiences and approaches.
Initially proposed in August 2018 through a consultation paper and has since received 99 responses spanning 26 jurisdictions. Replies from the industry and international regulators indicated a positive opinion towards the GFIN and an improved collaboration method for innovation and cross-border testing.
Following this consultation, the group has finalised terms of reference for governance and membership of GFIN. These are to act as a network of regulators encouraging collaboration, offering a forum for joint RegTech work and knowledge sharing, and offering firms a safe environment to test cross-border offerings.
On the back of this, GFIN has launched a one-month application period for a pilot phase of its cross-border testing.
Companies interested in taking part have until 28 February to submit applications to relevant participating regulators. This means that a company wishing to test a solution in the UK, Australia and Hong Kong would need to meet the independent requirements of each country’s regulator.
Regulators will then decide whether a company meets its screening criteria, areas of interest and ability to support the activity. After this, the regulator will ensure essential safeguards are in place across their jurisdiction to ensure risk is considered and consumer protection and market integrity is maintained.
Pilot tests will last for a six-month period, unless extended by regulators.
Having outlined the terms of reference, GFIN has increased its size from its initial 12 founding members to now include 29 organisations.
The members in the group include:
Coordination Group
Australian Securities & Investments Commission (ASIC) Australia
Central Bank of Bahrain (CBB) Bahrain
Autorité des marchés financiers (AMF) Québec, Canada
Guernsey Financial Services Commission (GFSC) Guernsey
Hong Kong Monetary Authority (HKMA) Hong Kong
Hong Kong Securities and Futures Commission (HKSFC) Hong Kong
Astana Financial Services Authority (AFSA) Kazakhstan
Monetary Authority of Singapore (MAS) Singapore
Dubai Financial Services Authority (DFSA) United Arab Emirates
Financial Conduct Authority (FCA) United Kingdom
Consumer Financial Protection Bureau (CFPB) United States
Members
Bermuda Monetary Authority (BMA) Bermuda
Alberta Securities Commission (ASC) Alberta, Canada
British Columbia Securities Commission (BCSC) British Columbia, Canada
Ontario Securities Commission (OSC) Ontario, Canada
Centrale Bank van Curaçao and Sint Maarten Curaçao and Sint Maarten
Central Bank of Eswatini Eswatini (Swaziland)
Magyar Nemzeti Bank (Central Bank of Hungary) Hungary
Isle of Man Financial Services Authority (IOMFSA) Isle of Man
Israel Securities Authority (ISA) Israel
Jersey Financial Services Commission (JFSC) Jersey
Capital Markets Authority (CMA, Kenya) Kenya
Bank of Lithuania (BL) Lithuania
South African Reserve Bank (SARB) South Africa
Abu Dhabi Global Market (ADGM) United Arab Emirates
Observers
Qianhai Financial Authority China
Consultative Group to Assist the Poor (CGAP) Global
International Monetary Fund (IMF) Global
World Bank Group Global
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