Vision for Economic Growth — a roadmap to prosperity 43 Big move #9 • Create international forums for collaboration, for UK regulators to partner with other national regulators to establish joint protected environments. such as multi-jurisdictional sandboxes that build on the work of the GFIN. We want potential access Companies can then test innovative new products and, potentially, gain multiple authorisations to Create innovative networks across the worldto turn into actual 昀氀ows of products and services. Lessons can be learned from the success of the UK’s introduce them in several jurisdictions far more quickly. Simultaneously, lessons learned can quickly 126 regulatory sandboxes, and their replication abroad Open markets drive innovation. The UK can play mobility arrangements. Digital agreements could be shared through the GFIN, and in昀氀uence the a leading role in establishing global regulatory include joining the multi-lateral Digital Economy demonstrates the power of these environments as development of supra national industry standards frameworks, especially for emerging technologies. Partnership Agreement (DEPA) which includes one way of safely fostering innovation. In particular, Within these frameworks, the UK can help 昀椀rms New Zealand, Chile, and Singapore. In terms of they enable regulators to adopt a more agile approach (see Figure 16). navigate these technologies and their application MRAs, the UK can complete the Swiss MRA and to overseeing new technologies. The next stage is internationally. A critical part of this, even if not apply the lessons learned as it is implemented. explicitly discussed in the recommendations below, Enhanced mobility arrangements could include Figure 16: Illustrative example of a multi-jurisdictional regulatory sandbox — one form of international collaboration will be to ensure that domestic policy frameworks ambitious visa-free arrangements or a preferential and standards (such as those on data use and sharing, visa-access regime. The UK’s FPS Strategy (see Potential key outcomes: or sustainable 昀椀nance approaches), are designed with Chapter 2) should set out the broad framework • • Businesses have regulatory authorisations to operate in all countries involved a focus on interoperability. It is crucial that the UK for how new approaches to trade policy with a • • Interoperable regulatory standards have been piloted and tested (where new regulatory regimes or standards are required) protect its high levels of openness.greater focus on services will be operationalised • (the “trade toolbox” approach).• Voluntary standards developed by industry have been piloted (where new voluntary standards are required) The UK should adopt a new strategic approach • Creating mechanisms for government-regulator- to openness and collaboration which will, in turn, industry partnership to create and advise on enable 昀椀rms to innovate and extend their services internationally. Key activities include:the full trade toolbox. One such mechanism • Flipping trade policy to focus on services as much could be the FPS Partnership Council as proposed earlier in this report. It could also build on existing as goods. Services trade plays a major role within processes already established, such as those with UK business Singaporean business Swiss businesses the UK economy, but it is not su昀漀ciently prioritised the UK-Australia trade deal (where regulators had a operating internationally operating in the UK operating in the UK within trade policy. While free trade agreements 24-month dialogue to provide recommendations) or (FTAs) are important, they are hard won and slow. the Swiss-UK MRA (where regulators and professional 127 For services, more could be achieved more quickly associations discussed the agreements). This would by deploying the full trade toolbox. The Resolution Cross-border regulatory sandbox established to support innovation within a speci昀椀c emerging innovation better integrate views on the design and execution of Foundation has outlined core components of market access, as well as FTA negotiations. Improving Financial Monetary Authority Swiss Financial Markets new service trade agreements to include mutual the consultative process will enhance buy-in for any Conduct Authority of Singapore Supervisory Authority recognition of professional quali昀椀cations (MRPQs); market access and trade agreements and ensure digital agreements; mutual recognition agreements that they are most impactful for 昀椀rms seeking to (MRA) for 昀椀nancial services; and other enhanced operate internationally.Note: this is an illustrative example only, and does not re昀氀ect a formal commitment among any parties to participate. Benefits associated Key actors (non-exhaustive) This move will bene昀椀t UK-based FPS on the global stage, Central and devolved national governments; FPS contributing to an uptick in FPS FDI in昀氀ows. See high- industry participants (including trade associations); level illustrative estimate in the previous big move. DBT; DSIT; FCDO; FCA; BOE; PRA; HMT relevant regulators in foreign jurisdictions. Birmingham skyline