On 19 March 2018, the FCA published the following speeches:
- Regulating innovation: a global enterprise. Highlights in the speech from Christopher Woolard (Executive Director of Strategy and Competition, FCA) include: (i) collaboration with international colleagues has been a core part of the FCA’s FinTech story since Project Innovate was launched in 2014; (ii) the FCA’s regulatory sandbox is supporting firms in reducing the time and cost of getting innovative ideas to market; and (iii) the FCA is increasingly hearing a demand from firms to operate internationally, so the FCA is working with partners from around the world to consider options for a global sandbox. In relation to how a global sandbox might work in practice the FCA has seen some creative suggestions including a ‘global dictionary’ which covers data needs across different countries to a joint mission statement from participating regulators with agreed criteria and consumer safeguards. Overseeing the global sandbox could be a ‘college of regulators’ – a consortium of representatives from participating regulators; and
- Transforming culture in financial services. In this speech Andrew Bailey (Chief Executive, FCA) discusses culture in financial services. In its recent Discussion Paper on transforming financial services culture the FCA focuses on four themes: (i) is there a ‘right’ culture in financial services; (ii) managing culture – the role of regulation; (iii) the role of reward, capabilities and environment in driving behaviours; and (iv) leading culture change. Mr Bailey states that there is no single ‘right’ culture, it depends on circumstances, and there are cultural characteristics that are highly suggestive of good outcomes. Mr Bailey also explains that the role of regulation in culture is not to attempt sweeping rules, but rather to use rules and supervision to create the right incentives and provide tools to diagnose the key characteristics. On the role of reward, Mr Bailey states that it is another influence to create the right incentive for good culture. On leadership, Mr Bailey explains that this plays a crucial role in shaping culture.