Editorial | what does this mean?
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How regulators have catalysed collaborations and technological innovations 5 hours ago
1 Co-founder and head of client delivery of RegTech Associates, Dr Sian Lewin has urged the financial community to stop thinking of regulators simply as “powerful organisations, here to control our behaviour, and stop us from doing certain things in the name of public interest.”
While regulators have a powerful influence in most economies – serving to manage the risks the financial system is exposed to – this is only part of their remit, declared Lewin in a MoneyFest presentation yesterday. In the last year alone, regulators have helped catalyse many collaborations and technological innovations within the financial services sector, for the benefit of many stakeholders.
FCA planning regulatory ‘nursery’ for fintechs
By Jon Yarker 20
th April 2021 10:29 am
The FCA will unveil a regulatory ‘nursery’ for fintechs this Autumn, after taking on the Kalifa Review’s recommendation for a ‘scalebox’.
Chancellor Rishi Sunak recently announced the regulator would be taking this work forward as part of Project Innovate to encourage the development of fintech companies.
The argument for this is that newly-authorised firms still require higher levels of support from regulators and often enhanced oversight as part of this.
In a speech marking national ‘fintech week’, FCA chief executive Nikhil Rathi said: “This [nursery] will create a period of enhanced oversight as those newly authorised firms develop and grow used to their regulatory status.
Levelling The Playing Field â Innovation In The Service Of Consumers And The Market - Speech By UK Financial Conduct Authority CEO, Nikhil Rathi, To FinTech Week Date
Highlights
Support for innovation has been matched by action to protect consumers and markets.
The FCA will be taking forward the Kalifa Review’s recommendation for a Scalebox, including the creation of a regulatory nursery.
Online search and social media firms need to take greater responsibility for their role in connecting consumers with these investment offers.
We also need to make sure that our internal processes allow for quick action, which is why we are currently reviewing how our Regulatory Decisions Committee functions.
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The highly anticipated Kalifa Review of UK Fintech (the Review), led by former Worldpay CEO Ron Kalifa, was published on 26 February 2021. Its 106 pages made up of a five-point plan of key recommendations and 15 sub-recommendations on investment in the UK fintech sector have generally been well received. Business leaders, participants and others engaged in the fintech community will continue to digest these recommendations over the coming weeks. The key question for many will be how quickly the UK government moves to implement the Review’s recommendations, and to what extent.
Karsten Wenzlaff of the German Crowdfunding Association Provides Insight into Harmonization of Pan-European Crowdfunding Rules
Last year, the
European Unionapproved pan-European crowdfunding rules that will apply to all member states thus finally offering a harmonized approach to online capital formation. Crowdfunding advocates and European platforms had long recognized the unnecessary friction intrinsic to raising capital based on national regulations instead of across the EU. The final legislation allows issuers the ability to raise up to €5 million during a 12 month period thus representing a significant improvement to the market. Industry participants embraced the changes that took years to be approved.
Recently, the