The Consumer Financial Protection Bureau announced it will begin working with other regulators across the globe on fintech regulation efforts.
The bureau will be working in collaboration with 11 other financial regulators in their new initiative to create the Global Financial Innovation Network. The network, in addition to regulating the fintech space, will allow companies to better navigate between countries as they scale new ideas, the CFPB explained.
The effort, currently organized by a draft document, will look to fulfill three main functions across the globe:
- Act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models
- Provide a forum for joint policy work and discussions
- Provide firms with an environment in which to trial cross-border solutions
“Joining the Global Financial Innovation Network demonstrates the bureau’s commitment to promoting innovation by coordinating with state, federal and international regulators,” CFPB Acting Director Mick Mulvaney said. “We look forward to working closely with other regulatory authorities, whether in the United States or abroad, to facilitate innovation and promote regulatory best practices in consumer financial services.”
This comes at a time when the Trump administration is calling for sweeping changes to the financial and mortgage ecosystem, a move that would supercharge the financial industry’s technological revolution.
The proposed changes come in the form of a broad-ranging report released recently by the U.S. Department of the Treasury, in which the administration calls for the establishment of “regulatory sandboxes,” where regulators would work directly with the companies they regulate to help firms innovate new products and services without fear of a regulatory smack down.
The CFPB announced it is seeking comment on the mission statement of the GFIN, and its proposed functions. Interest parties can provide feedback to the bureau’s Office of Innovation.
It is also asking for feedback on the questions laid out in the consultation document by October 14, 2018. In the fall, the working group will assess the feedback and agree on the next steps.
In addition to the CFPB and the United Kingdom’s Financial Conduct Authority, which initiated the idea of the global effort back in February, the organizations currently involved in the GFIN are: Abu Dhabi Global Markets; Autorité des marchés financiers of Québec, Australian Securities & Investments Commission, Central Bank of Bahrain, Dubai Financial Services Authority, Guernsey Financial Services Commission, Hong Kong Monetary Authority, Monetary Authority of Singapore, Ontario Securities Commission and Consultative Group to Assist the Poor.