Featured Product

    HM Treasury Issues Report on Independent Review of UK Fintech Sector

    February 26, 2021

    HM Treasury published a report on independent review of the fintech sector in UK. The review was formally launched in July 2020 to support the growth and widespread adoption of UK fintech and to maintain the global fintech reputation of UK. The report sets out a series of proposals for how the UK can build on its existing strengths, create the right framework for continued innovation, and support UK firms to scale. The review has identified a Five-Point Plan of recommendations related to policy and regulation, skills, investment, targeted approach to exports and inward investment, and leveraging of the output of fintech firms across UK and facilitating connectivity among these firms.

    The report sets out a strategy for the fintech sector as well as a delivery model to help the UK realize it. The review highlights the foundational capabilities to scale successful fintech firms across the UK and explains how enhanced connectivity and increased collaboration could drive growth further and faster. The key recommendations mentioned in the report include the following:

    • Deliver a digital finance package that creates a new regulatory framework for emerging technology. UK must prioritize new areas for growth and cross-industry challenges, such as financial inclusion, and adopt specific policy initiatives that will help create an enhanced environment for fintech, such as digital identification and data standards.
    • Implement a “Scalebox” that supports firms focusing on scaling innovative technology. This would include enhancing the Regulatory Sandbox, making permanent the digital sandbox pilot, introducing measures to support partnering between incumbents as well as fintech and regtech firms, and providing additional support for regulated firms in the growth phase.
    • Establish a Digital Economy Taskforce. Multiple departments and regulators have important fintech competencies and functions. The Digital Economy Taskforce would be responsible for collating this into a policy roadmap (the digital finance package). It would provide a “single customer view” of the government’s regulatory strategy on technology and a single touchpoint for private sector engagement.
    • Deliver an international action plan for fintech. The action plan represents a combination of public- and private-sector priorities and identifies sectors and markets with the highest potential to scale and build leading positions for UK fintech companies. The action plan includes certain focus areas: increasing the practical and commercial support available to international fintech, promoting of UK as a fintech growth country of choice, and launching an international fintech brand strategy.
    • Drive international collaboration through the Center for Finance, Innovation and Technology and launch an International Fintech Taskforce. This would be led by government with the purpose of gathering fintech and industry input to achieve progress against the “international plan for fintech.”
    • Launch an international “Fintech Credential Portfolio” to support international credibility and increase ease of doing business. UK should launch an International Fintech Credential Portfolio, which will provide easy access to the credentials required to drive overseas expansion, including identity verification, digital identification, regulatory compliance, and evidence of partnerships with incumbent financial institutions and backing from recognized investors. It is recommended that HM Treasury should appoint a private-sector body to design, build, launch, and administer the International Fintech Credential Portfolio.


    Related Links

    Keywords: Europe, UK, Banking, Securities, Fintech, Fintech Action Plan, Regulatory Sandbox, Regtech, Digital Finance Strategy, HM Treasury

    Related Articles

    BIS and Central Banks Experiment with GenAI to Assess Climate Risks

    A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe

    March 20, 2024 WebPage Regulatory News

    Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures

    Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.

    March 18, 2024 WebPage Regulatory News

    Singapore to Mandate Climate Disclosures from FY2025

    Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies

    March 18, 2024 WebPage Regulatory News

    SEC Finalizes Climate-Related Disclosures Rule

    The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.

    March 07, 2024 WebPage Regulatory News

    EBA Proposes Standards Related to Standardized Credit Risk Approach

    The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU

    March 05, 2024 WebPage Regulatory News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8957