OCC seeks input on innovation pilots

OCC seeks input on innovation pilots

US Federal banking agency the OCC (Office of the Comptroller of the Currency) is soliciting feedback on an innovation pilot programme to provide early regulatory input on new products and business models proposed by financial institutions.

The 45-day public comment period is intended to test the market appetite for a sandbox-style safe place for running small-scale, short-term tests on the feasibility of innovative financial services products. The programm focuses on "new or unique activities where uncertainty is perceived to be a barrier to development and implementation", states the OCC

“Supporting a financial system that innovates responsibly is central to the mission of the OCC,” says Comptroller of the Currency Joseph Otting. “As the prudential regulator of the U.S. federal banking system, the OCC has been a leading voice among regulators on the importance of encouraging innovation that promotes safe and sound bank operations, treats customers fairly, and provides fair access to financial services. This proposed program is an important step as we look to the future of supervision and the evolution of the US banking system.”

Entities eligible for the proposed programme would be OCC-supervised financial institutions, including those engaging a third party to offer the innovative product, service, or process. Banks may propose a pilot individually or as a collaborative effort such as a consortium or utility.

Comments on the proposed program should be sent to pilotprogram@occ.treas.gov by 14 June, 2019.

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