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Watchdogs from around the world, including the United Kingdom, the United States and Hong Kong, have announced a new alliance in the context of plans to encourage the growth of fintech, enabling companies to try new products in several countries once.
The UK Financial Conduct Authority inaugurated the so-called Global Financial Innovation Network on Tuesday as part of plans to formalize a "global sandbox", which it launched for the first time in February. Sandboxes allow companies to test innovative products with temporary regulatory authorization, reducing the time and cost of placing products on the market and making it easier for young companies to raise funds.
The United Kingdom was one of the first countries in the world to introduce a fintech sandbox, industry winners. But there are also questions about how regulators can keep up with a rapidly evolving sector and ensure consumer protection.
The network will involve 11 other regulators, including the United States Consumer Protection Bureau, the Monetary Authority of Singapore and the Hong Kong Monetary Authority.
The objective is to go beyond the concept of sandboxes and for regulators to share policy ideas and ensure that they are updated with developments in areas such as artificial intelligence, Big Data and blockchain, base of cryptographic resources.
"Financial services regulators need to re-consider existing working arrangements and collaborating, in order to balance the potential benefits of innovation (for consumers and the financial sector as a whole) with traditional strategic objectives, namely financial stability, integrity, financial inclusion, competition and wellbeing and consumer protection ", reads the FCA consultation document, published on Tuesday.
