Featured Product

    EBA Report Assesses Regulatory Framework for Fintech Activities

    July 18, 2019

    EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market. The report illustrates the developments on the regulatory perimeter across EU, the regulatory status of fintech firms, and the approaches followed by competent authorities when granting authorization for banking and payment services. EBA findings show a few national legislative developments that could potentially create an "unleveled" playing field in EU.

    On crowdfunding, EBA takes note of the EC proposal for regulation on crowdfunding service operators. On crypto-asset related activities, the report refers to the EBA January report on crypto-assets and the follow-up actions. As to the authorization approaches, EBA found that proportionality and flexibility principles are applied in the same way by competent authorities irrespective of whether the applicant presents a traditional or innovative business model and/or delivery mechanism. In the context of the second Payment Services Directive or PSD2, the monitoring by EBA will observe whether such principles are used to fast-track applicants. EBA will also monitor with a view to better assess the specificities of the national special regimes on granting authorization as a credit institution with a capital lower than EUR 1 million and their application to fintech applicants. Overall, the national regulatory status of fintech firms with innovative business models or delivery mechanisms shows the following two developments:

    • The shift from non-regulated to regulated activities—notably payment initiation services and account information services being subject to PSD2
    • The ancillary/non-financial nature of the services provided by fintech firms not subject to any regulatory regime, with the exception of crowdfunding, and to some extent activities related to crypto-assets

    This report delivers on one of the action points of the FinTech Action Plan of EC, which was published in March 2018 and ESAs to map current authorizing and licensing approaches for innovative fintech business models. The report also delivers on the EBA FinTech Road map of March 2018, which in line with the EC FinTech Action Plan, identified the monitoring of the regulatory perimeter, including the assessment of current authorization and licensing approaches to fintech firms, as one of its priorities for 2018/2019.

     

    Related Links

    Keywords: Europe, EU, Banking, Fintech, Proportionality, Fintech License, Fintech Action Plan, EBA

    Related Articles
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7295