Sunday, 15 Sep 2019
Business

Financial Conduct Authority Makes Worldwide Treaty For Collaboration In Fintech Innovation

The FCA (Financial Conduct Authority) of the U.K. has declared the making of a worldwide program to enhance partnership on fintech innovations (such as blockchain) between companies and regulators. This is as per an official press release issued this week. The FCA claims that the new treaty, GFIN (Global Financial Innovation Network), will operate in partnership with 11 financial organizations and related authorities so as to assist fintech companies interact more effortlessly with watchdogs from various nations.

Financial Conduct Authority Makes Worldwide Treaty For Collaboration In Fintech Innovation

As per the media reports, GFIN plans to consult on subjects such as the development of techs like AI (artificial intelligence) and distributed ledger tech, as well as the management of ICO (Initial Coin Offerings) and securities, among others. Executive Director for Strategy and Competition and board member at FCA, Christopher Woolard, claimed to the media in a statement that the making of GFIN will assist agencies harness the advantages of innovation in fiscal services for users, while regulating the potential damage.

The new treaty is a fraction of the additional development and implementation of the successful growth of global fintech regulatory sandbox by FCA that had been rolled out earlier in 2018.

Speaking of FCA, the authority last month finally released its long-expected post-implementation evaluation of crowdfunding law. As has been broadly speculated for quite some time, the FCA is seeking to adjust regulations to manage loan-supported crowdfunding (also dubbed as peer to peer lending) while leaving the equity side majorly unaltered. The FCA claims that they are majorly happy with the current regulatory structure for investment-supported crowdfunding platforms.

The FCA declared a new proposal regarding planned modifications claiming that the agency has experienced a developing sector of online lending with some loan-supported crowdfunding frameworks turning more and more complex.

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