FCA Launches Innovation Pathways Initiative to Support Fintech Firms
The Financial Conduct Authority (FCA) launched a CryptoSprint as well as a support service called Innovation Pathways, which is intended to remove barriers to entry for firms looking to innovate or launch new products, including automated advice and guidance. It also published insights on the financial sector firms and technology to be supported by the Regulatory Sandbox and Innovation Pathways, including firm sizes, sectors, and locations.
In addition, FCA issued eligibility criteria and guidance documents on Innovation Pathways and Regulatory Sandbox. FCA also published an authorization guide for firms developing automated advice models. This guide applies to firms that are seeking authorization and change in permissions, identifies key themes that firms should consider before applying, and is based on the experience of firms that have previously applied. As per FCA, data show that a high proportion of firms that use its innovation services successfully become authorized. Entities wishing to test an innovative new financial services product with real customers in a live environment can apply to the Regulatory Sandbox. Innovation Pathways combines the direct support and advice unit services of FCA; it is a bespoke support service that is aimed to help firms to launch innovative products and services for consumers and to promote innovation by:
- helping innovative firms understand how regulation relates to their activities
- removing barriers to entry through ongoing monitoring of rules
- clarifying existing rules in relation to new business models
- helping firms understand their obligations as regulated firms
Related Links
- CryptoSprint Launch
- Innovation Pathways Guide (PDF)
- Innovation Pathways Authorization Guide (PDF)
- Innovation Pathways Eligibility Criteria (PDF)
- Regulatory Sandbox Guide (PDF)
- Regulatory Sandbox Eligibility Criteria (PDF)
- Innovation Hub Market Insights
- More on FCA Initiatives
Keywords: Europe, UK, Banking, Insurance, Securities, Fintech, Regtech, Regulatory Sandbox, Innovation Pathways, Suptech, DLT, Blockchain, Crypto-Assets, Crypto Sprint, FCA
Previous Article
APRA Consults on Definition of Significant Financial InstitutionRelated Articles
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.
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).
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.
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.
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.
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.
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)
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.
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.
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.