One of the goals of the Authority’s 2021-2024 Strategic Plan is to work with stakeholders to embrace innovation within a dynamic, appropriately regulated international financial sector.
This builds on the foundations put in place in recent years to meet the increased demand for new technology and digital processes.
Progress achieved to date includes the approval of the Island’s first digital banking licence, the development of new technology platforms, and the introduction of crowdfunding as a regulated activity.
Engagement between the Authority and regulated entities or applicants is important to the success of innovation within the Island’s financial services sector.
Examples of areas of collaboration include:
- electronic due diligence systems and processes;
- cloud computing, including utilising software as a service (SAAS);
- artificial intelligence (AI) and deep machine learning;
- blockchain-based systems; and
- application programme interfaces (APIs).
Any proposals for innovative new products, services and solutions must be shown to be in the best interests of consumers, the business, the financial sector and the Island.
The Authority can assist new and existing regulated entities or applicants on a variety of levels, including:
- publishing guidance on best practice;
- discussing proposals at an early stage of development; and
- offering support to meet specific business needs.
It is important to note that the Island’s legislative framework applies to the behaviour of a regulated entity and the activity being carried out, rather than the mechanics by which the business is conducted.
For example, investment business is subject to the regulatory framework whether it is based on paper, off-the-shelf software or an AI system.