FCA published a report that analyzes the effectiveness of the Innovate program, which was launched in 2014 to enable innovation in financial services markets. The report sheds light on the work of FCA through Innovate, the rationale behind this work, and the reasons it advances the FCA objectives effectively. The evidence from the analysis suggests that the work of FCA, through the Innovate project, gives firms the regulatory certainty they need to develop their innovations and deliver them at speed.
The report highlights that this work encourages positive innovation domestically and internationally with incumbents responding to compete harder and improve their own offerings deliver them at speed. The report highlights that Innovate is creating a supportive regulatory environment through policy publications such as guidance on Distributed Ledger Technology (DLT) and cryptoassets and by increasing focus on areas in which it is believed that innovation can be particularly beneficial (for example, Green FinTech Challenge and themed events). Throught this project, FCA is promoting collaboration through the Global Financial Innovation Network, has signed 11 co‑operation agreements with international regulators, has involved international peers in its regtech work and TechSprints, and is working with international standard-setters to develop global standards.
The evaluation concludes that, although it is still early, clearer conclusions on Innovate's impact can be drawn as firms spend more time in the market and the evidence base grows. However, FCA has identified ways in which it can do more now to expand the assessment capabilities. FCA is going to broaden the information it collects from firms it supports and expand how it formally monitors their progress over time. This should allow clearer comparisons with similar firms that do not receive FCA support.
Keywords: Europe, UK, Banking, Insurance, Securities, Regtech, Fintech, Project Innovate, FCA
Previous ArticleFCA Announces List of Firms for Fifth Cohort of Regulatory Sandbox
FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341).
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.