|
|
The UK’s Financial Conduct Authority unveiled the so-called Global Financial Innovation Network as part of plans to formalise a “global sandbox”, which it first floated in February. Sandboxes allow companies to test innovative products with temporary regulatory authorisation, reducing the time and cost of getting products to market, and making it easier for young companies to raise funding.
The UK was one of the first countries in the world to introduce a fintech sandbox, winning plaudits from the industry. But there are also questions of how regulators can keep on top of a rapidly changing sector and ensuring consumers are protected.
The objective is to go beyond the concept of the sandbox and for regulators to share policy ideas and make sure they are up-do-date with developments in areas such as artificial intelligence, Big Data and blockchain, the technology that underpins crypto assets.
“Financial services regulators must re-consider existing ways of working and collaborating, in order to balance potential benefits of innovation with traditional policy objectives, namely financial stability, integrity, financial inclusion, competition and consumer wellbeing and protection,” reads the FCA’s consultation paper.
Full article on Financial Times (subscription required)