HM Treasury launched a review into the financial technology industry of UK to identify opportunities to support further growth in the sector. The Independent Fintech Strategic Review will identify priority areas for industry, policy makers, and regulators to support the ongoing success of the UK fintech sector. The review will consider how the UK can continue to foster innovation, maintain an ecosystem that supports growing firms, and promote the integration of new technologies across financial services. The review will make recommendations addressing three objectives that involve enabling growth, widespread adoption of fintech solutions, and advancing the international reputation of UK fintech. The review will be performed independently and will report to the HM Treasury with recommendations in 2021.
The review will run five workstreams, with each workstream being led by experienced financial services and fintech professionals. Each workstream will ultimately make up to three recommendations and each recommendation will seek to advance one or more of the objectives of the review. The five workstreams are:
- Skills and Talent—The review will make recommendations for building a robust and diverse UK workforce qualified in areas relevant to emerging financial trends, through developing a domestic skills base and addressing barriers to attracting foreign talent.
- Investment—The review will make recommendations for diversifying the UK investment landscape and addressing the challenges to attracting growth funding.
- National Connectivity—The review will make recommendations for supporting the growth of regional fintech through improving intra-region connectivity and leveraging the strengths of other fintech hubs.
- Policy—The review will make recommendations for enabling and fostering wider adoption of innovation, including supporting cooperation between fintech and financial institutions, while promoting competition.
- International Attractiveness and Competitiveness—The review will make recommendations for promoting UK solutions to overseas markets and support international exports and for promoting UK as a key market to establish and grow a fintech company.
The UK has established a world-leading fintech ecosystem, largely due to strong government support, a forward-leaning approach to regulation, and access to skills and capital. The government recognizes that now is the time to build on this success; the COVID-19 crisis has shown that further work needs to be done to increase mainstream adoption of technology solutions and to enhance the resilience of UK fintech.
Keywords: Europe, UK, Banking, Fintech, Strategic Review, HM Treasury
US Agencies (FDIC, FED, and OCC) finalized two rules, which are either identical or substantially similar to the interim final rules in effect and issued earlier this year.
EIOPA is consulting on a supervisory statement on the use of risk mitigation techniques by insurance and reinsurance undertakings.
APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions.
BoE and FCA are supporting and encouraging liquidity providers in the sterling swaps market to adopt new quoting conventions for inter-dealer trading based on SONIA, instead of LIBOR, from October 27, 2020.
Deutsche Bundesbank published special schema files for securities holdings statistics (SHS), along with a document on the XML format description.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
ESMA announced that it will recognize three central counterparties (CCPs) established in the UK as third-country CCPs, from January 01, 2021.
PRA published Version 02.04 of the PRA110 liquidity metric monitoring tool (PRA110 LMM tool).
FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.