The Bureau of Consumer Financial Protection announced earlier this week that it would join ten non-US financial regulators in an alliance, called the Global Financial Innovation Network (GFIN), to encourage the growth of fintech — and, potentially, create a “global sandbox” for financial innovation.

The alliance was initially proposed, in February 2018, by the UK’s Financial Conduct Authority (FCA).  Yesterday’s announcement revealed that, in addition to the FCA and the Bureau, nine other regulators had signed on — including financial regulators in Singapore, Hong Kong, Dubai, and Canada.  (Notably, no EU regulators are participating and none of the other US federal bank regulators appear to be involved.)

The functions of the alliance are still under development, but are expected to include:

  • acting as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models;
  • providing a forum for joint policy work and discussions; and
  • providing firms with an environment in which to trial cross-border innovative solutions.

A Consultation Document released yesterday outlines these functions in more detail, and also solicits comments and reactions from financial services firms and other stakeholders.  Comments must be provided by October 14, 2018, and comments from US stakeholders may be submitted to officeofinnovation@cfpb.gov.

While still very much under development, the GFIN could in the future help address the balkanized nature of local financial innovation sandbox arrangements allowing, for example, the easier testing of innovative solutions for cross-border consumer financial services (such as remittances).

Tags: CFPB, Fintech, Regulatory policy
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Photo of Nikhil Gore Nikhil Gore

A member of the international arbitration and financial institutions practices, Nikhil V. Gore represents sovereign states and U.S. and global firms in international treaty-based and commercial disputes. He also regularly represents U.S. financial institutions, and the U.S. branches and affiliates of foreign financial…

A member of the international arbitration and financial institutions practices, Nikhil V. Gore represents sovereign states and U.S. and global firms in international treaty-based and commercial disputes. He also regularly represents U.S. financial institutions, and the U.S. branches and affiliates of foreign financial institutions, in investigations and inquiries involving the Federal Reserve, OCC, FDIC, CFPB, and state banking regulators.

Mr. Gore has served as counsel in investment and commercial arbitrations spanning several industries and a variety of regions, including Asia, Eastern Europe, North America, and Southern Africa. Additionally, he has expertise in the law of the sea, and was part of the Covington team that secured an order from the International Tribunal for the Law of the Sea, which required Russia to release three Ukrainian naval vessels and twenty-four servicemen detained in the Black Sea in 2018.

In his financial institutions practice, Mr. Gore has experience with enforcement actions and investigations relating to the Bank Secrecy Act, the federal criminal money laundering statutes, the full range of safety and soundness issues (including, in particular, supervisory reviews of bank control functions), and fair lending and consumer compliance. Mr. Gore is a regular contributor to the firm’s financial services blog.

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