January 30, 2019
Israel Securities Authority Launches Global Financial Innovation Network (GFIN) with Financial Regulators Worldwide
ISA Chairwoman Anat Guetta: "I have placed the field of financial innovation at top of the ISA's priorities and on the agenda of the capital market. Israel is the source of ground-breaking innovations in FinTech, cyber, and other fields. It is our duty to provide the regulatory infrastructure to firms that both protects the interests of the investors and supports the development of innovative technologies that will ultimately improve and enhance the public's access to financial services in Israel with minimum mediation. I invite firms to join us and participate in building a technologically advanced, efficient capital market, with greater value for the investors."
The ISA, together with other regulators from all around the world, has today launched the Global Financial Innovation Network (GFIN), an international network for promotion of financial innovation. The GFIN is a network of 29 financial regulators and international agencies, including the IMF and the World Bank Group, that are committed to support financial innovation with a view to the interests of the investors. The initiative for the international network was developed by the British regulator (the FCA) and other organizations, with the aim of establishing an international sandbox and a forum in which leading regulators worldwide can share practical and innovative information.
GFIN aspires to provide innovative firms with an environment in which to communicate with the various regulators in a manner that supports the cross-border financial innovations of those firms. The GFIN also hopes to create a new framework for financial regulators to collaborate and share experience and approaches related to innovation. The international sandbox is designed for firms that wish to test innovative products, services, or business models in multiple jurisdictions concurrently.
In recent months, the ISA, together with the financial regulators, defined the conditions of membership in the GFIN, its structure and the modes of activity of its members. The following goals were defined as a result of the discussions:
- To act as a network of regulators to collaborate and share experience in the field of financial innovation including emerging technologies and business models;
- To provide a forum for join policy work in the field of RegTech, based on shared experience and knowledge;
- To create an international environment for firms interested in performing cross-border trials.
The GFIN also decided to permit local FinTech firms to participate in the international sandbox. Interested firms are required to submit applications by the end February 2019.
The ISA and the GFIN invite financial regulators and related organizations that are committed to support innovation that benefits the investors to join the global network launched today. In addition to Israel, the countries and organizations that are members of the GFIN include the UK, Australia, United States, Hong Kong, Singapore, South Africa, IMF, World Bank, Quebec, Hungary, and others.
In July 2018, the ISA established the regulatory Innovation Hub for FinTech initiatives. It should be noted that in view of the potential of the FinTech field and its contribution to the Israeli capital market and economy, the ISA published public announcement which called firms to participate in a dialogue in this field based on a shared language for the ISA and the relevant stakeholders in this field. As a result, in recent months the ISA staff has worked with several FinTech firms in various contexts, to help them understand the relevant regulatory requirements they must meet and adapt their activities to the relevant regulatory framework as necessary.
For additional information, please contact the following ISA staff:
On issues related to Fintech - Attorney Ron Klein, senior legalist, Corporate Finance Department Corporations Department. Tel: 02-6556407, Email: RonK@isa.gov.il
On issues related to the GFIN - Attorney Shoham Ben Rubi, Head of the International Affairs Division. Tel: 03-7109952, Email: email@example.com
For GFIN's Press Release press here
For more details about GFIN press here