United States Financial Regulators Sign Onto the Global Financial Innovation Network
In a report released by the US Securities and Exchange Commission on 24th October 2019, four US financial watchdogs have joined the Global Financial Innovation Network (GFIN). These regulatory agencies include the Federal Deposit Insurance Corporation (FDIC), the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and the Office of the Comptroller of the Currency (OCC).
GFIN is an international alliance of government regulators led by the United Kingdom’s Financial Conduct Authority (FCA) proposed in a consultation paper in August 2018 but was formally launched in January 2019 by an international group of financial regulators and related organizations. The creation (GFIN) was built on the FCA in early 2018 proposal to create a global sandbox.
According to the report, US financial watchdogs have in recent years shouldered the responsibility of clarifying regulatory issues, establishing an easy understanding for the stakeholders and also, promoting access to early identification of burgeoning regulatory problems, challenges, opportunities, and risks.
These four regulatory agencies joined 46 other financial authorities, central banks, and international organizations claimed to be members of the GFIN to boost huge cooperation and compliance among monetary authorities on different aspects of innovation discussions, regulatory methods, and lessons.
By participating in the GFIN, the objectives as mentioned above of the US regulatory agencies were broadened. It also enhanced their abilities to promote well-tailored innovation in the financial market within the United States and beyond. It will equally enable the regulators to represent the ambitions and needs of the United States and its financial services stakeholders.
Through the promotion of knowledge-sharing on innovation in rendering financial services, US members of GFIN will be prompted to further the following: financial inclusion, financial stability, market integrity, competition, consumer and investor protection.
Image via Shutterstock