The FCA, alongside 11 financial regulators and related organisations, has today announced the creation of the Global Financial Innovation Network (GFIN), building on the regulator’s proposal to create a ‘global sandbox’.

The network will seek to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas.

It will also create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.

The collaborative effort, involving regulators from around the world, also launched a consultation on the role the GFIN should play in delivering its objectives, including the tools it will use.

The consultation sets out the three main functions of the GFIN:

• act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models;
• provide a forum for joint policy work and discussions; and
• provide firms with an environment in which to trial cross-border solutions. 

As part of the consultation, the group is seeking views on the mission statement for the GFIN, its proposed functions, and where it should prioritise activity.

Christopher Woolard, FCA executive director of strategy and competition and board member, said: “The creation of the Global Financial Innovation Network 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.

“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.”

Today’s announcement followed a consultation on the idea of a ‘global sandbox’ in February.

The working group is looking for feedback on the consultation questions by 14 October.