Charles Randell, the recently appointed Chair of the FCA and the PSR, has delivered a speech, in which he discussed the increasing dominance of algorithms in our day to day lives, and noted some of the consequent issues...
Category - Fintech & Innovation
Emma RadmoreFATF/MENAFATF update in plenary
FATF and the Middle East and North African FATF have held their third plenary meeting. The meeting updated on a wide range of issues, including discussion on several typology reports and discussion of mutual evaluation...
Emma RadmoreThemes from thematic reviews
We recently wrote an article for Compliance Monitor setting out themes from recent FCA thematic reviews.
Customer authentication under PSD2
We recently wrote an article for Compliance Monitor on strong customer authentication under PSD2 and EBA Guidelines.
PRA writes to CEOs on crypto-risks
Sam Woods has written a “Dear CEO” letter to CEOs of all dual-authorised firms on exposures to crypto-assets. PRA understands firms may already have limited exposure to such assets, and is writing to clarify...
FIN. TeamEIOPA opens InsurTech Insight survey
EIOPA is inviting the insurance industry as well as those not directly active in the insurance value chain to provide views on InsurTech, which they define as ‘technology-enabled innovation in insurance that could...
HMT, Bank of England and FCA set out approach to onshoring financial services legislation
The Treasury, the Bank of England and the FCA have published information about how financial services legislation will be on-shored under the EU (Withdrawal) Act, in particular to ensure the (hopefully unlikely)...
BoE responds to the Treasury’s call for evidence on cash and digital payments
The Bank of England (BoE) has published its response to the Treasury’s Call for Evidence on cash and digital payments in the new economy. The BoE welcomes Treasury’s Call for Evidence. Key points include:...
FOS Annual Review published
The FOS has published its Annual Review for 2017/2018. Many of the complaints statistics highlight products that are the subject of ongoing regulatory scrutiny and activity: the FOS notes significant increases in...
Treasury Committee’s digital currencies inquiry
The Treasury Committee has updated its webpage with the written evidence it has received to its digital currencies inquiry, which was launched in February 2018. The Committee received written evidence from a number of...
FCA speaks on technology in combating crime
Megan Butler has spoken at the AML TechSprint event. She focused on how data and technology can help to detect and disrupt criminal activity and how financial institutions staff can help in the fight against financial...
HM Treasury: Cryptoassets Taskforce meets for the first time
The first meeting of the UK’s new Cryptoassets Taskforce took place on 21 May 2018. The Taskforce was first announced in April by the Chancellor of the Exchequer as part of the Government’s Fintech Sector Strategy...
Blockchain: Game changer or game over?
Following our successful seminar on 10th May, read our blog updates.
FinTech industry associations publish PSD2 voluntary guidelines
UK Finance, the Financial Data and Technology Association, the Electronic Money Association and techUK have jointly published voluntary guidelines. The guidelines are directed at account servicing payment service...
Treasury responds on cheque imaging
Treasury has published its response to its consultation on cheque imaging. It received 15 responses, and engaged with 4 other institutions. All agreed that a copy of a cheque should be made available to customers on...
FATF discusses FinTech and RegTech
FATF has updated on recent discussions with the FinTech and RegTech sectors. It has recently focused on: using digital IDs for CDD. Institutions increasingly use this, and discussions focused on whether there is any...
EU updates on retail product distribution
The European Commission has reported that consumers still face some obstacles when trying to compare investment funds, life insurance or personal pensions. The report finds that recent EU measures, such as MiFID 2 and...
UK and US announce working group creation
HM Treasury and the US Treasury Department have announced the formation of a Financial Regulatory Working Group, to formalise engagement on bilateral regulatory cooperation. The group is scheduled to meet twice a year
Non-bank PSP joins Faster Payments
The Bank of England has announced that TransferWise, an FCA-regulated non-bank PSP has joined Faster Payments as a direct participant. This is the first non-bank PSP to join a UK payment system settling in central bank...
BEIS publishes Green Paper on modernising consumer markets
The Department for Business, Energy and Industrial Strategy is consulting on proposals which, among other issues, seek to to improve the consumer experience in regulated markets for utilities, telecommunications and...
FCA and PRA publish business plans
The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an...
FCA clarifies cryptocurrency regulatory status
FCA has clarified its views on the regulation of cryptocurrency derivatives. It has previously explained that cryptocurrencies are, of themselves, not regulated although they may be part of other regulated products or...
Blockchain: Game Changer or Game Over?
Please join us for our Fintech and Insurtech Forum in London on 10 May. An expert panel will discuss the latest blockchain trends and breakthroughs. Attendance is free and you can register via our website.
UK Finance looks at DLT and identity validation
A paper published by the Whitechapel Think Tank, supported by UK Finance, looks at how technology can help the safe validation of identity and verification. It examines how distributed ledger technology can provide a...
HM Treasury launches first Fintech Sector Strategy paper
The Treasury has published its first Fintech Sector Strategy, setting out the government’s proposals to secure the UK’s place as a preferred location to start and grow a fintech business. The paper...
Complaints Commissioner concerned about information sharing between FOS and FCA
In a recent report the Complaints Commissioner expressed concern about the absence of published information about how and in what circumstances information about live ombudsman cases may be shared between the FOS and...
FATF reports to G20
FATF has reported on its work and priorities to the G20 Finance Ministers and Central Bank Governors meeting. The report covers its recent and future work on key initiatives, including improving transparency in...
FPC updates financial stability outlook
In its latest meeting, the Financial Policy Committee focused on: the outlook for UK financial stability generally: it thought these were standard, excepting the Brexit risks, with risks from global vulnerability still...
FCA looks back on past 5 years
John Griffith-Jones has reflected on FCA’s first 5 years of operation, since it took over from the FSA. He outlined: highlights – specifying FCA’s engagement with pension exit charges, general...
FCA Discussion Paper on transforming culture in financial services
As part of its ongoing work on culture and governance, the FCA has published a discussion paper, comprising a series of essays from academics and industry thought leaders covering: what a ‘good’ culture...
FCA surveys firms passporting into UK
As part of its preparation for Brexit, the Government announced in December 2017 that it would, if necessary, introduce legislation to enable a ‘temporary permission’ scheme for EEA firms and funds which...
Treasury launches digital currencies inquiry
Treasury has announced an inquiry into the role of digital currencies in the UK. It will look at DLT and its potential impact on financial institutions and the infrastructure, and will look at the regulatory response to...
BCBS report on the implications of fintech developments for banks and bank supervisors
The Basel Committee on Banking Supervision has published a report on the implications of fintech developments for banks and bank supervisors. The report assesses how technology-driven innovation in financial services...
TIA launches asset management accelerator
The Investment Association has announced its new FinTech accelerator for the asset management industry, to be called Velocity. It will launch later this year and will take two cohorts per year of between 4-8 firms, and...
FCA and CFTC sign FinTech MoU
FCA and the US CFTC have signed a memorandum of understanding to collaborate on FinTech initiatives powered through FCA’s Innovate and CFTC’s LabCFTC processes.
FCA seeks views on tech in reporting
FCA has launched a call for input on using technology to make regulatory reporting easier. It refers to its 2017 “TechSprint” in which it brought together firms and technology companies to look at challenges...
FCA consults on global sandbox
FCA’s regulatory sandbox has supported 60 firms with innovative ideas since its launch in 2016. To date, it has allowed firms to conduct tests in the UK only, but FCA is now planning to expand it and is seeking...
FCA explains perimeter to Treasury Committee
Andrew Bailey has written to the Treasury Select Committee setting out a summary of the powers “FCA does not have”. It has been asked many questions in the context of the RBS GRG investigation. The letter...
FCA consults on widening FOS access for small businesses
FCA has opened a consultation on plans to provide more small businesses with access to FOS. The changes proposed would allow FOS complaints redress to approximately 16,000 SMEs, charities and trusts, by changing the...
Treasury, FCA and EIOPA issue statements regarding continuity of activities and services after Brexit
Along with the PRA’s publication of consultation papers on its intended approach to supervision of third country firms, the Treasury, FCA and ESMA have recently issued statements providing an update on provision...
FCA publishes distributed ledger technology feedback statement
Following the publication of its discussion paper regarding the risks and opportunities, and characteristics of distributed ledger technology (DLT) in April 2017, the FCA’s feedback statement FS17/4 sets out...
Payment Services Regulator requires change to Direct Debit rules regarding switching Facilities Management providers
The Payment Services Regulator (PSR) has published its decision to require the operator of the Bacs payment system, of which the Direct Debit scheme is a part, to change its rules to help clients switch Facilities...
Law Commission to address electronic signatures and smart contracts in 13th Programme of Law Reform
The Law Commission has announced the programme of reforms it will be working on over the next 3 years. The projects include: Electronic signatures: there is an absence of explicit case law or legislation confirming...
FCA sets out future approach to authorisation and competition
FCA has outlined its approach to authorisation and to competition. It notes it is one of the few financial regulators in the world with an objective that includes promoting competition. It wants to understand, in...
EBA’s speech on fintech and cloud in banking
The European Banking Authority (EBA) has published Slavka Eley’s, Head of Supervisory Convergence Unit at the EBA, speech given at the EBF Cloud banking Conference. Slavka Eley’s speech covered three aspects...
FCA speaks on global capital market regulation and AMLTech
Megan Butler has spoken on the fundamental importance of co-ordination between national regulators, particularly in dealing with financial crime and cyber-threats. She looked at the particular benefits and risks that...
Regulation of crypto-currencies under negotiation
The UK government has published the answer to a written question asked of HM Treasury that reveals that they are in the process of negotiating amendments to the 4th Anti-Money Laundering Directive to bring virtual...
Government to use rental payment data to improve credit scores
Treasury has announced it is to offer financial support for the development of an application to allow those who rent properties to record and share their rent payment data, with a view to this helping them to improve...
Treasury sets out long term approach to asset management
Treasury has revealed its “Investment Management Strategy II“, which sets out the Government’s priorities to ensure the UK remains a globally competitive sector for asset management. The approach...
IAIS consults on draft Issues Paper on Index Based Insurances
The International Association of Insurance Supervisors has opened a consultation on a draft paper setting out issues on Index-based Insurances. Index Based Insurances involve contracts where a claim is defined with...
Commission adopts PSD2 authentication RTS
The European Commission has finally adopted the RTS under PSD2 on strong customer authentication (SCA) and common and secure open standards of communication. The key purpose of the RTS is to create stringent security...
Autumn Budget 2017: Key points for the financial services sector
Philip Hammond, Chancellor of the Exchequer, has delivered the Autumn Budget 2017. Key points for the financial services sector include: Asset management – the Government will publish a new long-term strategy to...
FCA warns consumers on risks of cryptocurrency CFDs
Following ESMA’s recent warnings to consumers and firms on the dangers of participation in initial coin offerings (ICOs), FCA has continued the regulatory focus on cryptocurrencies by issuing a consumer warning...
ESMA warns investors and firms on dangers of ICOs
ESMA has become the latest body to denounce initial coin offerings (ICOs), issuing statements directed at investors and firms highlighting the distinct risks involved. Echoing FCA’s previous warnings , ESMA has...
PSR update on authorised push payment scams and reimbursement model consultation
The Payment Systems Regulator (PSR) has provided an update on progress in relation to authorised push payment (APP) scams, where fraudsters trick customers into instructing their banks to make a payment to what the...
Cheque imaging: consultation on supporting legislation
HM Treasury has published a consultation on secondary legislation to support the Image Clearing System (ICS) for cheques. The legislative proposals follow the amendments to the Bills of Exchange Act 1882 introduced by...
EPC consults on mobile contactless card payments
The European Payments Council (EPC) has launched a three month consultation on the Mobile Contactless Single Euro Payments Area Card Payments Implementation Interoperability Guidelines (MCP IIGs). EPC has updated the...
We are supporting Bristol TechFin 2017
The firm is sponsoring the Bristol TechFin 2017 event. Members of our Financial Institutions team will be attending this event, which takes place on 7 November. We hope to see some of you there!
FCA report – lessons learned from its regulatory sandbox
On 20 October 2017, the FCA published a report on lessons learned from its regulatory sandbox. As a reminder, the regulatory sandbox allows firms to test innovative products, services and business models in a live...
FCA’s first Financial Lives Survey: 50% of UK adults potentially vulnerable
After collecting responses from over 13,000 UK consumers, FCA has revealed the results of its largest tracking survey of consumer behaviour and use of retail financial products and services. Aiming to tell the financial...
EIOPA speaks on future disruption to the insurance industry
Dr. Manuela Zweimüller, Head of Policy Department at EIOPA, has delivered a speech on what will the future hold? The European insurance industry in times of major disruption. The speech highlights challenges in respect...
Bond Dickinson financial services team ranked in Legal 500
The Bond Dickinson financial services team is delighted to have achieved a Legal 500 ranking. The new directory described the team as providing ‘responsive, practical, commercial and cost-effective’ advice to a wide...
BoE reviews FinTech Accelerator progress
Andrew Hauser, Executive Director for Banking, Payments and Financial Resilience, has commented on the work of BoE’s FinTech Accelerator programme since its launch in June 2016. The programme sought to improve...
EBA announces 2018 work programme
The European Banking Authority (EBA) has today published its annual work programme in which it announced its strategic priorities for next year and beyond. EBA comments on the Commission’s legislative programme...
Government announces Asset Management Taskforce
Stephen Barclay, City Minister, announced the creation of an Asset Management Taskforce to preserve the UK’s leading position as an asset management hub. Among his comments, he said: the Government sees delegation...
ESAs report on risks and vulnerabilities in the EU financial system
On 21 September 2017, the Joint Committee of the European Supervisory Authorities, published its September 2017 report on risks and vulnerabilities in the EU financial system, identifying Brexit and FinTech as two of...
FCA and HK Insurance Authority sign MoU
FCA has entered into a co-operation agreement with the Hong Kong Insurance Authority to enable the two regulators to collaborate better to support Fintech innovation. FCA already has in place similar agreements with the...
EU plans CMU reforms
The Commission has proposed a package of reforms to further develop the CMU. The package comprises: EU-wide supervisory priorities set by the ESAs, which will also take a greater role in supervising the work of national...
Lords publishes Brexit FS evidence
The House of Lords Select Committee on the EU has published the uncorrected oral evidence of its heading on financial services supervision after Brexit. The hearing looked at the differences between international...
FCA warns on risks of ‘ICOs’
The FCA has today made a statement on Initial Coin Offerings or ‘ICOs’. The FCA has said that ICOs, which can vary widely in design, are ‘very high-risk, speculative investments.’ They went...
ECB and BOJ publish joint research paper on Payment systems: Liquidity saving mechanisms in a distributed ledger environment
In December 2016, the Bank of Japan (BOJ) and the European Central Bank (ECB) launched their joint research project entitled “Stella”, which studies the possible use of Distributed Ledger Technology (DLT)...
Hong Kong Securities and Futures Commission makes statement on initial coin offerings
Much like the recent investigative report from the SEC in the USA in relation to the DAO token issuance, in which it was determined that a token sale amounted to the issuance of securities, this statement from the...
basel committee releases fintech consultation
The Basel Committee on Banking Supervision today released a consultative document on the implications of fintech for the financial sector. The document assesses how technology-driven innovation in financial services, or...
FCA Regulation round – up for August
This month’s edition of Regulation round-up discusses: the consultation to extend SM&CR to all financial services firms; the Threshold Conditions Team taking enforcement action and cancelling the...
bank for international settlements releases working paper on fintech opportunities
The BIS has today released Working Paper No 655 (the FinTech Opportunity) by Thomas Philippon. The paper assesses the potential impact of FinTech on the finance industry. It documents first that financial services...
Big Data in retail general insurance: FCA feedback statement
In November 2015, the FCA published a call for input on ‘Big Data’, ie the use of new or expanded data sets, new technologies to generate, collect and store data, and sophisticated analytical techniques...