ISA is launching the Global Financial Innovation Network to promote financial innovation

The Israel Securities Authority (ISA) is launching the Global Financial Innovation Network (GFIN), an international network for the promotion of financial innovation, with other regulators worldwide. GFIN is a network of 29 financial regulators and international bodies, including the International Monetary Fund and the World Bank, committed to supporting financial innovation while looking at the public interest. The initiative was initiated by the British regulator, the FCA, and other organizations with the aim of establishing an international sandbox, and to share practical and innovative knowledge among leading regulators worldwide.
GFIN strives to provide an effective way for innovative companies to communicate with regulators in a way that will help these companies navigate between countries. In addition, GFIN strives to create a new framework for cooperation between regulators responsible for providing financial services related to innovation, in order to share their experience and different approaches. The International Sandbox is designed for companies interested in testing innovative products, services or business models in multiple jurisdictions.
In recent months, the ISA, together with the financial regulators, has formulated the terms of membership for joining the GFIN network and the structure and modes of operation of its members. As a result of the discussions, the following goals were set:
• To act as a network of regulators operating in cooperation and sharing their experience in financial innovation in appropriate markets, including with regard to emerging technologies and business models.
• Provide a common framework for RegTech to share past knowledge and experience.
• Provide an international environment for companies interested in performing cross-border pilots.
In addition, it was decided to allow local Pintek companies to participate in the international "sandbox", and these companies must apply for membership by the end of February 2019.
The ISA and the GFIN invite financial regulators and related organizations committed to supporting innovation for the benefit of investors to join the global network launched today. Among the countries and partners in the GFIN network, in addition to Israel: Britain, Australia, the United States, Hong Kong, Singapore, South Africa, the IMF, the World Bank, Quebec, Hungary and more.
Recall that in July 2018, the Securities Authority established a Regulatory Hub for the field of Pintek. The Authority also published a call to companies in order to promote the discourse in the field and to create the common language between the ISA and the relevant authorities, in view of the inherent potential in the field and its contribution to the capital market and the Israeli economy. As a result, the Authority's staff has been escorting a number of Pintek companies in various contexts in recent months, in order to familiarize themselves with the relevant regulatory framework and to adapt their activity to regulation, if required.