UK’s global sandbox may rope in Indian regulators
Lord Mayor of London Charles Bowman
While the 11-member fintech delegation from UK is busy pitching ideas to potential partners for India foray, the Lord Mayor of London, who leads this “cricket team” has more on his agenda. In his meetings lined up with Indian market and banking regulators, Lord Mayor Charles Bowman plans to open discussions for participation in the global sandbox that was launched by UK’s Financial Conduct Authority (FCA) recently.
“What we are keen to do is essentially develop conversations about FCA’s sandbox. It’s the world’s best sandbox and we can share that (with India),” Bowman told IBS Intelligence Journal on the sidelines of an event in Mumbai today. “We are internationalizing it, if I can put it that way,” he added.
The FCA has collaborated with 11 financial regulators and related organisations around the world to form the Global Financial Innovation Network (GFIN) in order to create a global sandbox. The members include Monetary Authority of Singapore, Bureau of Consumer Financial Protection (USA), Australian Securities and Investments Commission and Hong Kong Monetary Authority.
GFIN’s proposal comes at a time when both—the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) are planning to set up a regulatory sandbox for testing fintech products.
In its report submitted in February, a working group had recommended that RBI needs to introduce an appropriate framework for regulatory sandbox or innovation hub within a well-defined space and duration to provide the requisite regulatory support to fintech innovations. This would help increase efficiency, manage risks and create new opportunities for Indian consumers in line with other regulatory jurisdictions, the report stated.
Bowman said that UK was looking at creating standardization of regulation across the global landscape. “There may be local differences because of regulations but if we can move towards the sense of ‘equivalence of outcome’ then we are moving the right direction,” he said.
His delegation comprises of representations from UK’s payment systems, blockchain-based supply chain providers, insurtech companies as well as capital markets and trading platforms. Bowman quips that all these seasoned batsmen are here to score a century and more.
Source: IBS Intelligence