Featured Product

    Expert Group of EC Issues Recommendations on Framework for Fintech

    December 13, 2019

    The Expert Group on Regulatory Obstacles to Financial Innovation (ROFIEG), set up by EC in June 2018, published a report on the recommendations for creating an accommodative framework for technology-enabled provision of financial services (fintech). The report presents thirty recommendations that cover all segments of the financial sector, all types of novel technologies, a wide range of business cases currently observed, and all types of market players. The recommendations also span important policy areas, including the prevention of money laundering and terrorist financing (AML/CFT), consumer protection, data sharing and use, and governance and operational resilience in the financial sector. EC also published frequently asked questions (FAQ) on the recommendations.

    The Expert Group sets out a considerable number of recommended actions, ranging from the monitoring of market developments and emerging opportunities and risks to the clarification of the applicability of (or where appropriate adaptation of) the existing EU regulation and the introduction of new EU law. The recommendations are grouped into four categories:

    • The need to adapt regulation to respond to new and changed risks caused by the use of innovative technologies, such as artificial intelligence and distributed ledger technologies (DLT), and to take up any emerging opportunities with respect to regtech or suptech (Recommendations 1-12)
    • The need to remove regulatory fragmentation and ensure a level playing field between incumbents and new market entrants, both fintech startups and bigtech firms, across EU (Recommendations 13-24)
    • The necessity to reconcile the regulation of personal and non-personal data with the opportunities and risks offered by fintech (Recommendation 25-28)
    • The need to consider the potential impact of fintech from the perspective of financial inclusion and the ethical use of data (Recommendations 1 and 29-30)

    In some cases, the Expert Group identifies the need for immediate and bold policy action. In particular, the Group identifies several areas where industry is being held back in its capacity to leverage available technology by the absence of clear regulation (in particular, in the area of crypto-assets) and notes that markets may establish practices that are difficult to change subsequently, pointing to the need for ex-ante bold thought leadership and policy action. 

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, Fintech, Regtech, Recommendations, Financial Innovation, Artificial Intelligence, Bigtech, Financial Inclusion, ROFIEG, EC

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8286