FCA Report Evaluates Impact of the Innovate Initiative for Fintech
FCA published a report that analyzes the effectiveness of the Innovate program, which was launched in 2014 to enable innovation in financial services markets. The report sheds light on the work of FCA through Innovate, the rationale behind this work, and the reasons it advances the FCA objectives effectively. The evidence from the analysis suggests that the work of FCA, through the Innovate project, gives firms the regulatory certainty they need to develop their innovations and deliver them at speed.
The report highlights that this work encourages positive innovation domestically and internationally with incumbents responding to compete harder and improve their own offerings deliver them at speed. The report highlights that Innovate is creating a supportive regulatory environment through policy publications such as guidance on Distributed Ledger Technology (DLT) and cryptoassets and by increasing focus on areas in which it is believed that innovation can be particularly beneficial (for example, Green FinTech Challenge and themed events). Throught this project, FCA is promoting collaboration through the Global Financial Innovation Network, has signed 11 co‑operation agreements with international regulators, has involved international peers in its regtech work and TechSprints, and is working with international standard-setters to develop global standards.
The evaluation concludes that, although it is still early, clearer conclusions on Innovate's impact can be drawn as firms spend more time in the market and the evidence base grows. However, FCA has identified ways in which it can do more now to expand the assessment capabilities. FCA is going to broaden the information it collects from firms it supports and expand how it formally monitors their progress over time. This should allow clearer comparisons with similar firms that do not receive FCA support.
Related Links
Keywords: Europe, UK, Banking, Insurance, Securities, Regtech, Fintech, Project Innovate, FCA
Previous Article
ESAs Publish Advice on Cybersecurity and Management of ICT RiskRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
