Featured Product

    Expert Group of EC Issues Recommendations on Framework for Fintech

    December 13, 2019

    The Expert Group on Regulatory Obstacles to Financial Innovation (ROFIEG), set up by EC in June 2018, published a report on the recommendations for creating an accommodative framework for technology-enabled provision of financial services (fintech). The report presents thirty recommendations that cover all segments of the financial sector, all types of novel technologies, a wide range of business cases currently observed, and all types of market players. The recommendations also span important policy areas, including the prevention of money laundering and terrorist financing (AML/CFT), consumer protection, data sharing and use, and governance and operational resilience in the financial sector. EC also published frequently asked questions (FAQ) on the recommendations.

    The Expert Group sets out a considerable number of recommended actions, ranging from the monitoring of market developments and emerging opportunities and risks to the clarification of the applicability of (or where appropriate adaptation of) the existing EU regulation and the introduction of new EU law. The recommendations are grouped into four categories:

    • The need to adapt regulation to respond to new and changed risks caused by the use of innovative technologies, such as artificial intelligence and distributed ledger technologies (DLT), and to take up any emerging opportunities with respect to regtech or suptech (Recommendations 1-12)
    • The need to remove regulatory fragmentation and ensure a level playing field between incumbents and new market entrants, both fintech startups and bigtech firms, across EU (Recommendations 13-24)
    • The necessity to reconcile the regulation of personal and non-personal data with the opportunities and risks offered by fintech (Recommendation 25-28)
    • The need to consider the potential impact of fintech from the perspective of financial inclusion and the ethical use of data (Recommendations 1 and 29-30)

    In some cases, the Expert Group identifies the need for immediate and bold policy action. In particular, the Group identifies several areas where industry is being held back in its capacity to leverage available technology by the absence of clear regulation (in particular, in the area of crypto-assets) and notes that markets may establish practices that are difficult to change subsequently, pointing to the need for ex-ante bold thought leadership and policy action. 

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, Fintech, Regtech, Recommendations, Financial Innovation, Artificial Intelligence, Bigtech, Financial Inclusion, ROFIEG, EC

    Related Articles
    News

    APRA Finalizes Reporting Standard for Operational Risk Requirements

    APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.

    March 03, 2021 WebPage Regulatory News
    News

    ECB Publishes Guide for Determining Penalties for Regulatory Breaches

    ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.

    March 02, 2021 WebPage Regulatory News
    News

    MAS Sets Out Good Practices to Manage Operational Risks Amid COVID

    MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.

    March 02, 2021 WebPage Regulatory News
    News

    ACPR Announces New Data Collection Application for Banks and Insurers

    ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.

    March 02, 2021 WebPage Regulatory News
    News

    BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox

    BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.

    March 02, 2021 WebPage Regulatory News
    News

    EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR

    EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).

    March 01, 2021 WebPage Regulatory News
    News

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    March 01, 2021 WebPage Regulatory News
    News

    EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models

    EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.

    March 01, 2021 WebPage Regulatory News
    News

    SRB Publishes Overview of Resolution Tools Available in Banking Union

    SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.

    March 01, 2021 WebPage Regulatory News
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6650