Financial technology (fintech) is progressing at a fast pace throughout the world and many countries are trying to catch up to the regulatory challenges that they present. This is why a group of 11 financial regulators from all over the world decided to work together to create the Global Financial Innovation Network (GFIN).
The founding members of GFIN came together under the UK’s Financial Conduct Authority (FCA) to link hands and work together to provide a global sandbox for fintech ideas and firms. The primary purpose of GFIN is to efficiently connect international firms working in fintech so that regulators wouldn’t end up facing problems with their operations.
It will also raise the level of cooperation among the regulatory agencies so that they wouldn’t be working at cross-purposes, as well as giving a chance at sharing at what works and what doesn’t work with new fintech. GFIN is in its preliminary phase though and it is currently asking for feedback on what its goals should be. It is also asking for ideas on a potential development roadmap for the network as well as where should it put its priorities.
However, it does emphasize that one of its main functions would be to link international firms together and to come up with cross-border regulatory solutions.
GFIN Members
The current membership of GFIN consists of the following regulatory bodies: Abu Dhabi Global Market (ADGM), Australian Securities & Investments Commission (ASIC), Autorité des marchés financiers (AMF), Bureau of Consumer Financial Protection (BCFP, USA), Central Bank of Bahrain (CBB), Financial Conduct Authority (FCA, UK), Dubai Financial Services Authority (DFSA), Guernsey Financial Services Commission (GFSC), Monetary Authority of Singapore (MAS), Hong Kong Monetary Authority (HKMA), Consultative Group to Assist the Poor (CGAP), and Ontario Securities Commission (OSC, Canada).
There is still a possibility for additional regulatory bodies to join after the formal launch of GFIN. The plan is to have a steering committee oversee the operations of the network, with one of them being named as chairman.
Feedback Welcomed
As for the request for feedback, the FCA has already received 50 such responses since it first floated the idea of GFIN back in February 2018. Most of these responses say that GFIN should focus on properly regulating cryptocurrencies and related products like initial coin offerings (ICOs). GFIN is still seeking more feedback and will be accepting input until mid-October of this year.
