Banking News

Cross border financial regulatory sandbox launches

regulation sandbox

Today the Global Financial Innovation Network (GFIN) announced it was accepting applicants that wish to test financial innovations across more than one jurisdiction. GFIN includes 29 international regulators including the UK’s Financial Conduct Authority (FCA), the Monetary Authority of Singapore (MAS), the Hong Kong Monetary Authority (HKMA) and the Australian Securities & Investments Commission (ASIC). GFIN is likely to be relevant for blockchain projects though blockchain is not explicitly mentioned.

Until 28 February the group is inviting applications from firms to participate in a pilot for cross border testing. It’s a test for both GFIN and the firms.

The network plans to support pilots for testing innovative products, services and business models across multiple jurisdictions. But for those hoping to apply once and be accepted by multiple regulators, that’s not how it works. It’s still necessary to apply separately to each one. That’s because each has its own national regulations. So a firm that wishes to test in three jurisdictions has to meet the separate eligibility requirements of all three.

The announcement published by the FCA stated that one potential benefit might be regulatory convergence over time, but emphasized that was a longer-term “opportunity”.

Coordination Group

Organisation

Jurisdiction

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)

UAE

Financial Conduct Authority (FCA)

United Kingdom

Consumer Financial Protection Bureau (CFPB)

United States

Members

Organisation

Jurisdiction

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)

UAE

Observers

Organisation

Jurisdiction

Qianhai Financial Authority

China

Consultative Group to Assist the Poor (CGAP)

Global

International Monetary Fund (IMF)

Global

World Bank Group

Global