US and UK regulators to collaborate on fintech innovation
The US Commodity Futures Trading Commission (CFTC) has signed an arrangement.
The US Commodity Futures Trading Commission (CFTC) has signed an arrangement with the UK Financial Conduct Authority (FCA) to collaborate and assist the firms with their financial technology (fintech) initiatives, namely LabCFTC and FCA Innovate respectively.
FCA Innovate was created in October 2014 and LabCFTC in May last year.
The arrangement will focus on sharing information on fintech market trends and developments as well as it will help the fintech companies to expand into each other’s market.
The regulators will also share insights derived from their respective sandbox, proof of concept and innovation competitions.
Furthermore, the arrangement is also expected to boost the efforts of CFTC and FCA to encourage innovation and ensure international collaboration on new regulatory practices.
FCA chief executive Andrew Bailey said: “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 today with the CFTC, a forward looking and proactive regulator, are so important.
“As our first agreement of this kind with a US regulator, we look forward to working with LabCFTC in assisting firms, both here in the UK and in the US, who want to scale and expand internationally in our respective markets.
“As part of the Arrangement, the FCA and the CFTC will be hosting a joint event in London to demonstrate how firms can engage with both regulators.”
To date, the FCA’s Innovation Hub has supported more than 500 businesses, while the LabCFTC has been engaged with nearly 150 entities since its establishment in the last year.