HM Treasury has published a response to its consultation on payments regulation and the systemic perimeter. The consultation was prompted by the U.K. government's Payments Landscape...
Assertive regulators are bringing greater clarity and new challenges as they step up oversight of fintech innovation. As the fast-growing fintech industry thrives, the...
On the 10 February 2022, the Economic Secretary to the Treasury provided an update on the progress government is making to deliver its vision for the future of financial services in the UK.
Key developments of interest over the last month include: United Kingdom: HM Treasury responds to Payments Landscape Review call for evidence Hong Kong: HKMA publishes white paper...
While investment into UK fintechs continues apace, so does their consumer adoption, as 86 per cent of Brits now use fintech apps to manage or spend their money.
Surveys and Reports
Regulatory Developments
United Kingdom: Financial Services Act 2021 becomes law
On 29 April 2021, the Financial Services Bill 2019-21 received Royal Assent. In a press release, HM Treasury described the Financial Services Act 2021 (the Act) as a ‘major milestone in shaping a regulatory framework for UK financial services outside of the EU.’ The Act makes significant amendments to key legislation, including the Financial Services and Markets Act 2000 (FSMA) and onshored EU financial services regulation.
Sections of particular relevance include the following:
Section 29 requires the FCA to consult on whether it should make rules providing that authorised persons owe a duty of care to consumers. The consultation was launched on 14 May 2021 (see the separate item below). The FCA must publish the results of its analysis before 1 January 2022 and make final rules by 1 August 2022;
The Bank Of England And FinTech: Public Support For Private Innovation - Speech By Dave Ramsden, Deputy Governor, Markets And Banking, Given At UK FinTech Week 2021 mondovisione.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondovisione.com Daily Mail and Mail on Sunday newspapers.
Surveys and Reports
Regulatory Developments
United Kingdom: HM Treasury consultation on new special administration regime for payment institutions and electronic money institutions
On 3 December 2020 HM Treasury (HMT) issued a consultation on proposed insolvency changes for payment institutions (PIs) and electronic money institutions (EMIs), including a bespoke special administration regime (SAR). HMT notes the shortcomings of the current insolvency regime and is making these proposals ahead of the conclusion of the Payments Landscape Review to protect consumers in the event of the insolvency of PIs and EMIs.
The proposed SAR is intended to have the following key features:
An explicit objective on the special administrator to return customer funds as soon as reasonably practicable.
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Recent regulatory developments focussed on the payments sector. Includes reports on HM Treasury's proposed new special administration regime for PIs and EMIs, and the latest on the APP CRM Code. See also our General regulatory news in the Related Materials links.
Contents
Production and distribution of cash: House of Commons Public Accounts Committee report
APP scams voluntary code: extension of interim funding to 30 June 2020
APP scams voluntary code: LSB report
Payment threats and fraud trends: EPC 2020 report
PIs and EMIs: HM Treasury consults on a new special administration regime