ASIC has released a consultation document and background on a proposed global financial innovation network (“GFIN”) that would see 12 international financial services regulators and organisations formally cooperate on policy and regulation.
The proposed GFIN links 12 financial regulators and related organisations from around the world. This would facilitate information sharing across different markets and between regulators, allow for the creation of joint policy and discussions, and provide a more internationally connected environment for financial services companies.
The consultation document emphasises supporting innovative and emerging companies attempting to expand internationally. The GFIN would seek to build upon the many bilateral and multilateral cooperation agreements that are already in place to support global industry and engage with growing fintech sector.
The consultation document currently focuses on the proposed mission and function of the GFIN, with an emphasis on financial integrity, innovation, consumer protection, competition, market stability and global collaboration.
As part of ASIC’s continued focus on developing the financial technology industry by looking internationally, the GFIN proposal expands upon ASIC’s recent cooperative agreements with Canadian financial service regulators, the Dubai Financial Services Authority, the China Securities Regulatory Commission and others.
The consultation document also considers further developing the regulatory sandbox concept, with Australia’s ‘regulatory sandbox’ legislation designed to allow emerging FinTech companies to test new financial products without the full regulatory burdens traditionally associated financial services. The consultation document for GFIN references a recent publication by the UK Financial Conduct Authority that supports the idea of a global sandbox to support innovation in the financial services industry.
The consultation period on GFIN closes on 18 October 2018.
We are experienced in providing advice to fintech businesses and understand the opportunity these proposals create for entrepreneurs seeking to expand their target markets into other jurisdictions. If you would like further information about GFIN and how it applies to your business, please do not hesitate to contact Hillary Ray or someone from our Financial Services Team.