THE FINANCIAL Conduct Authority (FCA)’s plan to create a global regulatory sandbox took another step forward as the regulator announced a consultation phase.
The sandbox would allow fintechs to conduct tests in different jurisdictions at the same time.
It would also enable regulators to work together and solve common cross-border regulatory problems.
The FCA is now collaborating with 11 financial regulators and related organisations to explore the opportunities of a Global Financial Innovation Network (GFIN).
“The creation of the 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,” said Christopher Woolard, FCA executive director of strategy and competition.
“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 FCA said that the consultation will set out the main functions of the GFIN.
These will include acting as a network of regulators to collaborate and share experience of innovation in respective markets, and providing firms with an environment in which to trial cross-border solutions.