FCA and CFTC to collaborate on fintech innovation
The Financial Conduct Authority (FCA) and the US Commodity Futures Trading Commission (CFTC) have signed an arrangement that commits the regulators to collaborating and supporting firms through each other’s fintech initiatives – LabCFTC and FCA Innovate.
The Cooperation Arrangement on Financial Technology Innovation (Fintech Arrangement) focuses on information-sharing regarding trends and developments within the market. It also facilitates referrals of companies interested in entering the different markets, and sharing information and insight derived from each authority’s relevant sandbox, proof of concept, or innovation competitions.
Andrew Bailey, chief executive of the FCA, comments: “International borders shouldn’t act as a barrier to innovation and competition in financial services and that is why agreements like the one we have signed with the CFTC, forward looking and proactive regulators, are so important.”
“The FCA’s Project Innovate is the gold standard for thoughtful regulatory engagement with emerging technological innovation,” says CFTC chairman J. Christopher Giancarlo. This is the first innovation arrangement for the CFTC with a non-US cooperation.
The Fintech Arrangement follows the creation of FCA Innovate in October 2014 and LabCFTC in May 2017. Among other activities, these initiatives were set up to help businesses with innovative ideas navigate the regulatory landscape and engage with the regulator.
To date, the FCA’s Innovation Hub has supported over 500 businesses and the authorisation of 43 businesses.
LabCFTC has engaged with over 150 entities since its launch last year, published its first primer on the topic of virtual currencies, and soon will seek public feedback on a planned 2018 innovation competition.
By Heidi Napper – guest journalist.