Last week, Bloomberg hosted a conference where the Financial Conduct Authority (FCA) discussed its plans for bringing innovations to the UK financial services industry. One such innovation is a new program called Project Innovate, which will help guarantee that certain areas – like mobile banking and online investment or money transfer – are supported by the regulatory environment.
FCA chief Martin Wheatley spoke at the conference, which Finextra attended, and explained that the FCA is opening its doors to financial service firms that are developing innovative approaches that aren’t explicitly addressed by current regulation.
Next, a scoping document that explores how innovation can be supported more effectively needs to be created. It will focus on the FCA’s expectations of firms, as well as on the specifics around advice and support for businesses bringing new models of financial service to market, Wheatley said.
Currently, the FCA wants to open a dedicated ‘hub’ in its policy team that will pull together FCA expertise to support the innovation ecosystem.
According to Wheatley, this will happen in two ways.
“First, by providing help to firms who are developing new models or products advice on compliance so they can navigate the regulatory system,” Wheatley explained. “Second, by looking for areas where the system itself needs to adapt to new technology or broader change – rather than the other way round.”
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