FCA announces consultation phase for global fintech sandbox

The Financial Conduct Authority (FCA) has announced a consultation phase in its plan to create a global fintech sandbox.

The UK financial regulatory body announced plans for a global version of its domestic regulatory sandbox in February this year with the aim of tackling common cross-border issues and enabling financial technology firms to conduct tests in different countries concurrently.

Collaboration

The FCA’s plan for the sandbox will include a collaboration between the regulatory body and 11 financial regulators and other organisations to explore the creation of the Global Financial Innovation Network (GFIN) and the opportunities that it will bring.

Among the financial organisations participating in the scheme are the Dubai Financial Services Authority, the Guernsey Financial Services Commission, the Monetary Authority of Singapore and the Central Bank of Bahrain.

The consultation will involve a discussion on how the GFIN will deliver its objectives, such as what tools it will use, with the FCA and participating firms looking for views on the GFIN’s mission statement.

The group is also calling for other regulators or related organisations that are interested in the programme to get involved.

Benefits

Commenting on the importance of establishing the GFIN, the FCA’s Executive Director of Strategy and Competition Christopher Woolard said: “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.”