Featured Product

    EP Publishes Report on Status and Outlook of Fintech Regulations in EU

    February 12, 2019

    European Parliament published a briefing that outlines the current and upcoming fintech-related laws at the EU level. It follows on from a March 2017 EPRS briefing that focused, inter alia, on the evolution, scope, and economic prospects of fintech. The report covers regulatory activities toward the implementation of the fintech-related plans of the European regulatory authorities, including the areas of payments services, consumer and data protection, insurtech, virtual currencies, and supervision of regulatory sandboxes.

    Twenty-one EU member states and three European Economic Area countries currently have innovation hubs, while only five member states (Denmark, Lithuania, the Netherlands, Poland, and the UK) have fully operational regulatory sandboxes. Based on a report from ESAs, EC is expected to present a report with best practices for regulatory sandboxes in the first quarter of 2019. EC is also monitoring the development of crypto-assets and initial coin offerings with the ESAs. Based on an assessment of risks, opportunities, and the suitability of the applicable regulatory framework, EC will assess whether regulatory action at the EU level is required. Regarding payment services, EC (along with market players) is aiming to develop, by mid-2019, standardized application programming interfaces that are compliant with the PSD II and the GDPR as a basis for a European open banking eco-system, covering payment and other accounts. 

    The report also mentions that, following up on an EC report from June 2017, in December 2017, European legislators agreed to extend the scope of the Anti-money-laundering Directive to virtual currency exchanges and wallet providers. Member states must bring the laws, regulations, and administrative provisions necessary to comply with this directive into force by January 10, 2020. Overall, the report states that, in EU, attention is being paid to the contribution that fintech could make to increasing efficiency, strengthening financial integration, and enhancing the role of EU in financial services. The report emphasizes the pressing need for safe and effective common rules supporting innovation and protecting consumers. Indeed, in EU, areas remain where member states can choose to apply individualized or less strict rules at national level (for example, peer-to-peer lending and virtual currencies). This can result in a fragmented environment, which may prevent businesses from expanding across borders. It can also lead to an uneven playing field and arbitrage opportunities that incentivize companies to obtain permits in less restrictive jurisdictions in an effort to minimize red tape while operating internationally. 

    The financial technology, or fintech, sector encompasses firms that use technology-based systems, either to provide financial services and products directly or to make the financial system more efficient. Fintech is a rapidly growing sector: in the first half of 2018, investment in fintech companies in Europe alone reached USD 26 billion. The fintech sector brings rewards including innovation and job creation, but also challenges, such as data and consumer protection issues, and the risk of exacerbating financial volatility or cybercrime. To tackle these multi-disciplinary challenges, policy- and lawmakers in EU have adopted and announced several initiatives, for instance, on intra-EU payment services, data protection, crowdfunding, and regulatory sandboxes. 


    Related Links

    Keywords: Europe, EU, Banking, Regtech, Fintech, Regulatory Sandbox, Insurtech, Virtual Currencies, European Parliament

    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153