TheCityUK’s report calls on UK policymakers to capitalise on the regulatory freedoms afforded by Brexit and to lead the global regulatory approach to cryptoassets. The report sets out five principles for shaping...
Category - Fintech & Innovation
Lucy HadrillTreasury clarifies CIS exemption for P2P operators
Treasury has amended the FSMA (CIS) Order to clarify that the exemption that means operators of peer-to-peer lending platforms are not operating CIS when they carry out activities closely associated with platform...
Emma RadmoreLaw Commission: call for evidence on digital assets
The Law Commission has been asked by the government to make recommendations for reform to ensure that the law is capable of accommodating both cryptoassets and other digital assets in a way which allows the...
CMA publishes policy paper on digital regulatory landscape
The Digital Regulatory Cooperation Forum (DRCF) has submitted its response to the Department of Digital, Culture, Media and Sport on the future of the digital regulatory landscape and how to achieve coherence in...
FCA publishes Digital Sandbox pilot evaluation
FCA has published an evaluation report of the Digital Sandbox pilot. The report sets out the findings of the pilot, including how it accelerated the development of innovative products and solutions within financial...
Duncan ScottFCA speaks to FLA on post-Covid regulation
Charles Randell, Chair of FCA and PSR has given a speech to the Finance & Leasing Association in which he outlined the ways in which the financial services sector has changed post-Covid and how FCA must adapt to...
BoE and Treasury announce creation of Central Bank Digital Currency Taskforce
The Bank of England (BoE) has announced, jointly with HM Treasury, the creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC. The BoE has also published the...
FCA delivers speech on innovation
Nikhil Rathi, CEO at the FCA, spoke at UK FinTech Week on innovation in the service of consumers and the market. Highlights include: success in financial innovation has been enabled by regulatory open-mindedness;...
Government to boost UK Fintech and financial services
The Department for International Trade (DIT) has set out a series of measures that will help boost the UK’s Fintech presence in overseas markets. This announcement is in response to the publication of the Kalifa...
European Commission consults on instant payments
The European Commission has issued a consultation paper seeking the views of consumers, corporate users and payment service providers (PSPs) on the use of instant payment transfers. The objective of the consultation is...
FCA feeds back on Open Finance
FCA has published a policy statement following its call for input on Open Finance. The statement looks at how Open Banking is paving the way for more innovation, and notes the large number of regulatory sandbox...
European Parliament reports on Digital Finance Package legislation
The European Parliament’s Committee on Economic and Monetary Affairs has published a draft report setting out proposed changes to a range of existing legislation to ensure alignment with the regulation on digital...
FMLC responds on cryptoasset regulation
FMLC has responded to Treasury’s call for evidence on the regulation of cryptoassets and stablecoins. Unsurprisingly, it notes many legal uncertainties, not least how to identify a “token”, and...
LSB considers the customer journey in a digital world
In January this year the Lending Standards Board (LSB) released a thought piece on the customer journey in the digital space, with the aim of promoting best practice and good customer outcomes in the provision of...
Hannah FrostEuropean Parliament issues draft report on proposed markets in crypto-assets regulation
The European Parliament’s Committee on Economic and Monetary Affairs has issued a draft report containing suggested amendments to the text of a regulation on markets in crypto-assets and amending Directive (EU)...
CMA consults on future oversight of open banking
The CMA has published a consultation paper seeking views on what arrangements it would be appropriate to put in place to ensure the effective oversight and governance of open banking following the implementation of the...
Treasury publishes Kalifa Fintech Review
Treasury has published the Kalifa Review of UK Fintech, which launched last summer. The report sets out proposals for the UK to build on its existing strengths in the sector. The review looks at the development...
Treasury and FCA discuss perimeter report
Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...
ESMA publishes crowdfunding FAQs
ESMA has published its first FAQs on the new crowdfunding Regulation, looking at SPVs and how they can be used in crowfunding models.
FCA reports on technology risks and mitigation
FCA has published the results of a multi-firm review that looks at how firms implement technology change and how to deal with problems that result. The review looks particularly at the consequences of the pandemic...
Commission asks ESAs for digital finance advice
The European Commission has asked the ESAs for advice on how it is to adapt the prudential and conduct regulatory and supervisory frameworks to take account of digital finance initiatives. The advice should cover:...
UK and Singapore announce FTA
The UK and Singapore have announced the signing of a UK-Singapore Free Trade Agreement and negotiations on a UK-Singapore Digital Economy Agreement. For financial services, this means opportunities for UK Qualifying...
EPC Report on Payment Threats and Fraud Trends
The European Payments Council (EPC) has published its report on payment threats and fraud trend for 2020. The report attempts to create awareness amongst stakeholders involved in the payments domain to allow them to...
FIN. TeamFCA publishes RDR and FAMR evaluation
FCA has published an evaluation of the impact of the RDR and FAMR. On the whole, it found a positive impact. It notes that the FAMR has: led to a small increase in the number of adults who receive financial advice, and...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
EU statement on EU-Japan Joint Financial Regulatory Forum
The European Commission has published a statement on the second meeting of the EU-Japan Joint Financial Regulatory Forum which took place on 20 November. Topics of discussion at the meeting included the impact of Covid...
FCA updates on Digital Sandbox
FCA is collaborating with the City of London Corporation on a “digital sandbox” to help innovative firms tackling challenges caused by the pandemic. FCA received 94 applications for 30 spaces on the pilot...
Government heralds future financial services regulation
Rishi Sunak has announced a range of measures the UK is now to take to ensure the financial services industry moves forward. In a speech, he praised all the measures the industry has taken to date and through the...
FCA to join global product testing forum
FCA has joined an initiative organised by the Global Financial Innovation Network, as one of 23 regulators taking part in a cross-border testing initiative of innovative products, services, business models or reg tech. ...
Financial Regulatory Working Group issues joint statement on UK-US
The Financial Regulatory Working Group’s meeting on 20 October was the first since the UK left the EU. The meeting focussed on five key themes: the economic response to, and potential financial stability impacts...
Crowdfunding Regulation in OJEU
The EU Regulation on Crowdfunding and the accompanying amendments to MiFID 2 have been published in the Official Journal. It will apply from 10 November 2021. Please ask us if you’d like to see the articles...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
Lords seeks clarification on EU crowdfunding legislation
Lord Kinnoull, Chair of the European Union Committee, has written to John Glen MP in response to HM Treasury’s letter of 11 August which set out the Government’s views on the EU Crowdfunding Regulation. The...
FSB reports on global stablecoins
The Financial Stability Board (FSB) has published its finalised high-level recommendations for the regulation, supervision and oversight of “global stablecoin” (GSC) arrangements. The report says that GSC...
FCA bans retail sales of crypto-derivatives
FCA has published final rules to ban the sale to retail customers of derivatives and ETNs that reference certain types of crypto-assets. The new rules define “unregulated transferable cryptoassets” as...
EP approves crowdfunding proposals
The European Parliament has approved, in plenary, the proposal for EU-wide regulation of crowdfunding services and platforms. Given that the Council’s position was approved unamended, the text was deemed adopted...
FCA opens 2 sandbox windows
FCA has opened two new application windows in its Sandbox – applications for Cohort 7 of the now established regulatory sandbox, and the pilot of a new Digital Sandbox. The emphasis is on firms providing products...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
EU proposes crypto-asset market Regulation
The EU has published a proposal for a Regulation on markets in crypto-assets, as part of its Digital Finance package. The proposal notes many Member States have legislated on issues relating to crypto-assets which has...
ECON adopts draft reports on digital finance and the capital markets union
The European Parliament’s Economic and Monetary Affairs Committee (ECON) has adopted two draft reports on (1) digital finance and FinTech action plan and (2) the further development of the capital markets union...
Regulatory Initiatives Grid heralds return to “normality”
FCA has published the second edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. The grid, first published in May, is aimed to help firms see upcoming regulatory work...
MEPs call for action on FinTech
MEPs are pleased that the Commission has committed to an early finalisation of its Action Plan on Fintech, but stress the measures must get the balance right between innovation and consumer protection. They want a...
FCA updates on digital sandbox
FCA has updated on the results of its 3 week “DataSprint” which created datasets that the firms now in the digital sandbox can use for testing and developing proofs of concept around 3 use cases related to...
Glen outlines stance on EU crowdfunding legislation
John Glen has written to Sir William Cash and Lord Kinnoull explaining the Government’s views on the EU Crowdfunding Regulation. He notes that the Regulation takes effect after the end of the transition period...
EBA seeks views on Regtech
EBA has published a RegTech industry survey to seek views on how RegTech solutions are being, and could be, used. It wants to understand current activity, raise awareness of it, and have information to inform future...
PSR encourages innovation and competition in payments
Genevieve Marjoribanks, head of policy at the PSR, says the PSR is looking at what consumer protections are available and whether they adequately protect those who use bank transfers to make payments. The PSR is...
Emma RadmoreEVENT: Open Banking Webinar
Our next retail banking mixer by webinar will focus on open banking. Our session will include a brief introduction to the topics followed by a discussion that you’d be welcome to join in with: Open banking from a...
FCA updates on sandbox
FCA has announced its acceptance of 22 businesses into cohort 6 of its sandbox. It had received 68 applications, mainly from the retail banking, payments and retail lending sectors. More than half were seeking to...
Government launches Fintech review
The Government has launched an independent Fintech Strategic Review to set priorities for industry, policy makers and regulators. Its aims are: to ensure UK fintech has the resources to grow and succeed to create...
EU Council adopts new rules for crowdfunding platforms
The Council of the European Union (“the Council“) has announced that it has adopted new rules to improve the way that crowdfunding platforms operate across the EU. The new framework is part of the capital...
Amelia GreenTreasury consults on fin proms approval “gateway”
Treasury is consulting on a fundamental change to the rights of authorised firms to approve financial promotions of unauthorised firms. Both it and FCA have become increasingly concerned that some firms are approving...
FCA and City Corporation work on digital sandbox
FCA and the City Corporation have announced their intention to collaborate on the pilot of the digital sandbox FCA had previously announced, designed to help innovative firms aiming to address the challenges Covid-19...
FCA reminds crypto businesses to register
FCA has reminded businesses that carry on cryptoasset activity in the UK to register with it for AML purposes, if they have not done so already. Firms that were carrying on the activities before 10 January 2020 must...
EIOPA consults on digitalisation and the value chain
EIOPA is consulting on how the continued evolution of technology is affecting business models and bringing beneficial innovation and a new set of risks that need to be taken into account. Firms are increasingly relying...
EVENT: Retail Banking Mixer Webinar
Our next r=Retail Banking Mixer will be held by webinar on 18th June at 10am. We are delighted to be joined by Rosemary Ford and Amber Andrade from Deloitte this time. The webinar continues the focus on COVID-19. Our...
EU Crowdfunding Regulation – investor protection aspects
We’ve now published the second part of our review of the proposed EU Crowdfunding Regulation, looking at the investor protection aspects.
FCA updates on Innovation Hub help
FCA has updated its information on requesting Innovation Hub support in light of Covid-19. It wants to hear from firms who have creative and innovative solutions to the challenges the virus is posing, and is...
FCA pilots digital sandbox
FCA has announced a pilot of a digital sandbox to give support to innovative firms that are tackling challenges caused by Covid-19. It is asking for expressions of interest before opening applications later in the...
Up next from FCA
Unsurprisingly, FCA’s recent publications have almost exclusively focused on Covid-19. However, in BAU, it still proposes: a consultation on exit fees on investment platforms and comparable firms over the summer;...
Commission approves Green Finance position
The European Commission has sent a Communication to the Parliament on the sustainable finance initiative. It explains the background to the “taxonomy” for the common classification system, and the areas on...
Digital finance and retail payments: European Commission launches two targeted consultations
On 3 April 2020, the European Commission (EC) launched consultations in two areas: digital finance and retail payments. The EC recognises that the coronavirus pandemic has shown that consumers and businesses are...
FMLC responds on crypto taxonomy
FMLC has responded to the European Commission’s consultation on classification of crypto assets. The detailed response notes: the current parallel classification of cryptoassets in the UK on the one hand and the...
JMLSG consults on crypto guidance
JMLSG is consulting on a new part to its sectoral guidance, to cover cryptoasset exchange providers and custodian wallet providers. The new Part 22: defines crypto-assets, noting some examples which firms should...
PIFMA concerned about Open Finance
PIFMA has responded to FCA’s call for input on open finance. While it applauds FCA’s stance on encouraging innovation, and feels the financial services sector has lagged behind other sectors in adopting...
Invalidly executed deeds of guarantee still enforceable
In Signature Living Hotel Ltd v Sulyok [2020] EWHC 257 (Ch), the High Court was asked to consider whether two deeds of guarantee were enforceable in circumstances where the signature of the director of the surety had...
Scott NodderFCA speaks on digital assets
Therese Chambers has spoken on the financial crime risks presented by stablecoins and other digital assets. She spoke of: early attempts to launch non-state backed digital currency, and Bitcoin’s predecessors...
The Treasury Committees approves Bailey, but says it will keep an eye on the FCA
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England. Whilst it is satisfied that Mr Bailey has the professional competence and personal...
EIOPA speaks on digital finance risks
Fausto Parente, EIOPA executive director, has spoken on managing the risks of digital finance in cyber underwriting. He spoke of the value of data to insurers in enabling them to customise customer products, but the...
FCA publishes research report on its TechSprint Approach
The FCA has published a Research Report called “Fostering innovation through collaboration: The evolution of the FCA TechSprint Approach“. TechSprints are typically 2 day events that bring together...
FATF blacklists Iran
At FATF’s February plenary meeting it: updated its list of high risk jurisdictions. Notably, it decided Iran has not met commitments to complete its action plan, or enact the Palermo and Terrorist Financing...
FCA publishes annual sector views
The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...
Up next from FCA
The latest Policy Development Update highlights the following publications before the end of Q1 2020: policy statement on fees and levies; consultation on exit fees in investment platforms and comparable firms;...
FCA writes strategy letter to platforms
FCA’s latest portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...
Financial Services AI public-private forum
On 23rd January, the FCA published the Terms of Reference for the Financial Services Artificial Intelligence Public-Private Forum (AIPPF), which it is establishing with the Bank of England to further constructive...
FCA updates AML pages
FCA has updated its pages on AML to take account of the coming into force of the changes to the MLRs implementing MLD5 and the regime for registration of those in the cryptoasset sector. It also confirmed the...
FCA confirms crypto-AML requirements
FCA has formally confirmed that it has, as of 10 January, become the AML/CTF supervisor of businesses carrying on certain crypto-asset activities that now fall under the MLRs. It reminds market participants that no new...
UK regulators announce data reforms
The FCA has released its new Data Strategy which outlines plans to develop its data capabilities through a renewed focus on the use of advanced analytics and automation techniques. The FCA hopes this strategy, an...
Queen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
EU reaches political agreement on crowdfunding measures
The EU Council and Parliament have reached a provisional political agreements on the Commission’s proposal for legislation to boost crowdfunding in the EU. The framework is the 12th of the 13 pieces of the CMU...
ECB looks at privacy in central bank digital currency
ECB has published a paper looking at what is the right balance between privacy in electronic payments and compliance with AML requirements. The paper explores how a central bank digital currency payment system based on...
Regulators update on climate change action
UK and EU regulators have published papers on the regulatory response to the risks of climate change. the BoE has published a discussion paper on how it proposes to carry out its “biennial exploratory...
EVENT: Retail Banking Mixer
Bringing together professionals in the insurance, banking and other financial services sectors, we will be hosting the first of our quarterly RETAIL BANKING MIXERS at our Edinburgh office on 9th January from 4pm –...
FPC publishes latest Financial Stability Report
In its latest Financial Stability Report, the FPC has published its latest stress testing results and current view on the stability and state of the UK financial system. In addition to its comments on open-ended funds...
FCA calls for input on open finance
FCA has launched a Call for Input on Open Finance. The concept builds on the principles of open banking and extends it to a wider range of products. FCA has a vision that open finance will allow consumers and...
BIS considering prudential treatment for crypto-assets
BIS is inviting responses to a discussion paper on the design of a prudential treatment for crypto-assets, in recognition of the growth in these types of products and related services, and consequential and resulting...
EU calls for halt on stablecoins
The European Council and Commission have called for a halt on any stablecoin arrangements in the EU, saying they should not start operating until the legal, regulatory and oversight challenges and risks have been...
FSB publishes BigTech and cloud service provider reports
The Financial Stability Board (FSB) has published two reports considering the financial stability implications from market developments in BigTech in finance, and from third party dependencies in cloud services. The...
Regulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
UK Jurisdiction Taskforce confirms legal status of cryptoassets and smart contracts under English law
The UK Jurisdiction Taskforce, a group set up by the industry-led LawTech Delivery Panel, has published the results of a public consultation and legal study that considered several key questions for determining the...
Reserve your place: Tackling Financial Exclusion
Join our expert industry panel for an evening of networking and discussion focused on delivering an inclusive financial sector for Scotland. Help shape the conversation as we discuss: Are we too obsessed with a cashless...
AFME calls for crypto supervision convergence
AFME has published a paper setting out recommendations to help deliver consistent regulatory treatment of crypto-assets within Europe. It wants to establish a taxonomy; provide clear expectations for market participants...
FSB holds Paris plenary
The FSB Plenary met in Paris to review vulnerabilities in the global financial system and to discuss advances in FinTech. The Plenary also agreed its work programme for 2020. Current vulnerabilities The Plenary...
FATF consults on digital identity
FATF is consulting on the use of digital ID systems for CDD. It has published some currently unapproved guidance and is asking for views on a number of key issues. It asks for comment by 29 November.
EBA reports on potential barriers to cross-border banking and payment services
The EBA has published a report identifying potential impediments to the cross-border provision of banking and payment services in the EU. The report was developed under the EBA’s FinTech Roadmap, and calls on the...
FCA speaks on future of regulation
Nausicaa Delfas spoke on the future of UK financial regulation post-Brexit. She said FCA continued to prepare for Brexit, whatever form it takes and whenever it happens, and referenced its preparations for a no-deal...
FMLC evaluates exchange tokens
The Financial Markets Law Commission has published a report in which it evaluates some of the live issues and considerations in relation to exchange tokens and virtual currencies. The report provides an overview of...
EBA recommends enhanced online disclosure requirements
The EBA has issued an Opinion directed to the EC, setting out recommendations to revise the scope and consistency of disclosure requirements in EU law to take account of the increasing use of digital marketing channels...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
Regulatory risks of Stablecoins in focus
The emergence of global stablecoins has been a focus point over the past few days, with the FSB, FATF and the G7 Working Group on Stablecoins all publishing statements on the impact and risks of the development of these...