Pursuant to a public request for input from the Global Financial Innovation Network, GFIN, MQCC has both introduced itself and responded to the ten (10) questions posed by GFIN leadership and members.
What is the Global Financial Innovation Network?
The Financial Conduct Authority (FCA) has, in collaboration with 11 financial regulators and related organisations, on 7 August 2018 announced the creation of the Global Financial Innovation Network (GFIN), building on the FCA’s proposal earlier this year to create a ‘global sandbox’. Source: UK Financial Conduct Authority.
GFIN Consultation Paper - Ten Questions:
Q1: Do you agree with the proposed Mission Statement for the GFIN?
Yes
Q2: Do you agree with the three main proposed functions for the GFIN?
Yes
Q3: What aspects/areas of regulation pose the biggest challenge when it comes to innovating?
Achieving trusted levels of harmonization and integration of disparate, distributed regulations and business methods.
Q4: Do you see any reasons why this initiative may be counterproductive to the outcomes it is seeking to achieve?
A regulatory-recognized Global Sandbox is already created (www.globalsandbox.org); the Global Sandbox operating system and development environment is over 10 years old and the system is continuously registered to ISO 9001 since May 9, 2008; the International Quality Management Systems standard and National Standard-equivalent of 119 countries including the following members of the FCA-inspired Global Financial Innovation Network GFIN (see below). The MQCC Global Sandbox is built on advanced artificial intelligent algorithms and the principles of "BlockChain". The MQCC Global Sandbox is a litigation-tested, mature system and recognized by regulatory bodies in over 119 countries. The MQCC Global Sandbox is built to accommodate the World Trade Organization Technical Barriers to Trade (WTO TBT), Organization for Economic Co-operation and Development "Common Reporting Standards" (CRS); Group of Seven (G-7) "Eight Element Standard" Cybersecurity system. Finally, the MQCC meta-operating system that powers the MQCC Global Sandbox is a military/defense grade system because MQCC meets the military/defense standards for USA, Canada and UK Ministries of Defense standard requirements for "higher-level quality standards for complex and critical items". This is a non-exhaustive list of regulatory and standards integrations invented, developed and marketed by MQCC, for the benefit of legislators, regulators and regulatees. Please visit www.mqcc.org to learn more.
GFIN Member Countries whose National Bodies are members of the MQCC Systems Registration Standard setting body, the International Organization for Standardization (ISO).
United Arab Emirates
Abu Dhabi Global Market (ADGM)Contact: Chris Kiew Smith
National Representative to ISO.org, the MQCC Systems Registration Standard setting body is ESMA.
Canada
Autorité des marchés financiers (AMF)(Québec, Canada)Contact: Lise-Estelle Brault, Senior Director Derivatives514 395 0337
National Representative to ISO.org, the MQCC Systems Registration Standard setting body is SCC.
Australia
Australian Securities & InvestmentsCommission (ASIC)Contact: Cuihua Cartwright
National Representative to ISO.org, the MQCC Systems Registration Standard setting body is SA.
Bahrain
Central Bank of Bahrain (CBB)Contact: yasmeen@cbb.gov.bhBureau of Consumer Financial Protection(BCFP, USA)Contact: Paul Watkins
National Representative to ISO.org, the MQCC Systems Registration Standard setting body is BSMD.
United Kingdom
Financial Conduct Authority (FCA, UK)Contact: Paul WorthingtonGuernsey Financial Services Commission (GFSC)15Global Financial Innovation Network (GFIN)Contact: Steve Chandler
National Representative to ISO.org, the MQCC Systems Registration Standard setting body is BSI.
Hong Kong/China
Hong Kong Monetary Authority (HKMA)Contact: Henry Chang
Correspondent member to ISO.org, the MQCC Systems Registration Standard setting body is ITCHKSAR.National Representative to ISO.org, the MQCC Systems Registration Standard setting body is SAC.
Singapore
Monetary Authority of Singapore (MAS)Contact: Sopnendu Mohanty
National Representative to ISO.org, the MQCC Systems Registration Standard setting body is ESG.
World Bank
Consultative Group to Assist the Poor (CGAP)Contact: Ivo Jenik
The World Bank abd ISO.org, the MQCC Systems Registration Standard setting body, have a partnership pursuant to a MOU signed in 2016.
Pursuant to your question #6.1, below, there may be an opportunity for GFIN to collaborate with MQCC. Visit www.globalsandbox.uk or www.globalsandbox.org to learn more.
Q5: Do you believe the issue of developing a best practice for regulators when assessing financial innovation should be a priority for the network?
Yes and concurrently, the network should seek a way to implement concurrent sandboxes so that regulatees (licensees) may engage in innovation "sooner rather than later".
Q5.1 If not, what other priorities should the network first address?
see Q5 answer.
Q6: Do you agree with the approach to involve global standard setting bodies as part of the GFIN?
Yes.
Q6.1 How else would you like to see these organisations involved?
Private-Public Partnership (PPP), for example, GFIN and its members might consider a licensing arrangement or collaboration with the MQCC Global Sandbox; a proven, trusted, mature system which is over 10 years old, continuously registered to ISO 9001 for over a decade and is designed for the purposes that the GFIN was created.
Q7: What kind of outcomes from the policy work and regulatory trials would your organisation benefit from?
Any outcome from GFIN would be integrated into the MQCC system and this would help the MQCC customers accelerate market entry.
Q8: Would the cross-border trials be of interest to your organisation?
Yes.
Q8.1 If so, could you provide any potential example use cases?
MQCC has over 15 years of international expertise in developing systems for the finance industry and regulatory sector that also enables cross-border trials of financial applications so the body of knowledge is expansive for this question and answer document. Some information may be found at www.globalsandbox.org.
Q9: Do you agree with the proposed approach to managing the application process for cross-border trials?
Yes.
Q10: [For regulators] Do you anticipate any challenges with the proposed approach to managing the application process, or conducting crossborder trials?
MQCC regulates private, non-regulated (free-trading) financial securities within its own network. The whole purpose of creating the MQCC global sandbox was to streamline the process of helping MQCC fintech, regtech, supervisory tech, customers (including government and regulatory bodies) to eliminate process challenges and make cross-border trials efficient and regulatory-harmonized.
Finally, for those of your members who are too busy to visit the MQCC Global Sandbox, here is some information from page 1 of the MQCC.org website:
Welcome to the Future of Commerce™
MQCC™ is Global Network Administrator of the First Application of Blockchain-in-Finance, first developed by Bungay International Inc., serving the global community since at least before April 9, 2005.
Developer of the world's first internationally recognized, turn-key, plug 'n play (PnP), end-to-end (E2E) "secure, risk-based meta-operating system" built on BlockChain principles; designed to assure statutory, regulatory and process conformity of a regulated organization (regulatee) within any industry sector. Celebrating over 15 years of successful litigation-tested, regulatory recognized, continual operation.
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As of May 9, 2018 - the MQCC BlockChain™ System Celebrates 10 Years of Continuous Registration to the International and National Standard for Quality Management of 119 Countries.
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Since 2006, the MQCC™is the world's first and only Canada-based, international organization that helps federal and non-federal, government and non-government organizations; regional, national and international regulators; regulatees and regulatory exempt organizations to improve general public trust and reduce regulated and non-regulated industry risk, through development and implementation of conformity systems based upon BlockChain¹, "proof-of-work" technology [BlockChain Zero One™] - registered to meet both the rigorous 'National Standard of Canada' for Quality Management Systems, published by the CSA Group (Canadian Standards Association) and USA equivalent: 'American National Standard' (ANS) for Quality Management Systems published by ANSI (American National Standards Institute). The Standard is recognized and trusted by Canadians, USA residents and consumers in over 119 countries including UK & AU.
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Confirmed by the equivalent National Standards Bodies of 119 countries: according to the Standards Council of Canada (SCC), a Canadian federal Crown corporation which reports to Canadian Parliament through the Minister of Innovation, Science and Economic Development Canada: Standards help to ensure BETTER, SAFER and MORE EFFICIENT methods and products, and are an essential element of technology, innovation and trade.
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In accordance with the Government of Canada’s Cabinet Directive on Regulatory Management (and its equivalent in 119 countries), the National Standard of Canada for Quality Management is adopted from world-class international standards, namely, the quality management system standard ISO 9001, published by the International Organization for Standardization (ISO) [based in Switzerland], of which Canada is a founding member.
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The MQCC™: Celebrating 12 Years of Pioneering Advances in Recognized Certification & the MQCC™, Defense (Military) Standard, Litigation-Tested, Regulatory-Recognized,
- BlockChain Conformity Management System
- Pan-Industry, Higher-Order Artificial Intelligence (AI)BlockChain, Regulatory Harmonized & Secure, Risk-based Organization Conformity meta-Operating Systems
- BlockChain Systems, Technology, Products and Services
- Financial Products
- Financial Services
- Conformity Science Standards
The world's first, safest and most trusted BlockChain operating system. MQCC: the standard by which all BlockChain algorithms are measured.
Developer of the world's first pan-jurisdiction (national and international) harmonized regulatory BlockChain protocol.
Developer of the world's safest cryptofinancial system.
Registered to the National Standard of 119 Countries.
Thank you for the opportunity to share this with GFIN. Pursuant to your question Q.6.1 (How else would you like to see these organisations involved?); instead of "reinventing the wheel", if GFIN and it's members are keen on licensing opportunities or PPP (Private-Public Partnership) integration opportunities, MQCC is here for you.
Your's Truly,
/s/
Anoop Bungay
Founder, President; MQCC
Calgary, Canada
