The Jersey Financial Services Commission (JFSC) has signalled its intention to support financial innovation by joining the Global Financial Innovation Network (GFIN).
Formally launched on 31 December and with a primary focus on protecting consumers’ interests, the GFIN is an international group of 29 financial regulators and related organisations that are open to interacting with innovative businesses.
Spearheaded by the UK regulator, the Financial Conduct Authority, the network aims to give regulators a forum to collaborate and share their experiences and approaches to dealing with emerging technologies. It also offers businesses a new and practical way to work with financial regulators to scale new products, services and business models.
It provides these companies with the ability to test different innovations simultaneously in multiple countries, which will give real-time insight into how a product or service might work in a particular market.
Mike Jones, JFSC director of policy, commented: “By joining the GFIN we are sending a clear message to Jersey and the international community and re-emphasising our existing position that we are open to fintech. Being part of the network will allow us to further understand the technologies that are being developed and trialled, not just in the Island but elsewhere, and we will seek to support these businesses and their new ideas where we can, providing it’s in the public’s best interest.”
To mark the launch of the GFIN, the member regulators are inviting tech firms to take part in a pilot to test their innovations across different jurisdictions. Businesses wanting to take part in the six month trial will need to ensure that their proposed activities meet the eligibility criteria for the jurisdictions where they want to test.
Mr Jones added: “This trial is for GFIN members as much as it is for businesses. We’re looking for companies who are flexible and can provide us with feedback on their experiences. They in turn will benefit from the opportunity to test and compete in a regulated space. All this will help inform our work and the network’s in the future.”
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