FCA speaks on regulation and Fintech

Emily Shepperd spoke at City Week on how the FCA, and regulation generally, can help firms innovate and embrace Fintech. She spoke of challenges to the traditional banking model and what banks had done to address them and remain successful. She looked at the example of Finnish bank OP which, over recent years, has diversified its business into many new areas. She said regulators should help innovators set the foundations in place to grow businesses. She said that her job, as Executive Director of Authorisations at FCA, is to minimise disruption – while supporting disruptors. She noted that FCA is not always saying “no”, but is often in fact saying “try again”. She spoke to the types of firms currently receiving help in the Regulatory Sandbox, and how these firms graduate to the Early and High Growth Oversight function – noting that FCA has seen 10% of these firms changing their business models within a year of becoming authorised.

She finished by speaking of the role FCA has yet to play in the regulation of crypto-related activities.

Emma Radmore