The FCA has published Feedback Statement 16/2: Feedback statement on call for inputs: Regulatory barriers to innovation in digital and mobile solutions (FS16/2).
Last summer the FCA published a call for input on regulatory barriers to innovation in digital and mobile solutions. In particular the FCA wanted to understand better the strategic regulatory barriers and enablers, either in the UK or EU level, that prevent development of digital and mobile solutions.
The key point in FS16/2 is that most respondents to the call for input sought clarity over regulatory definitions. In addition, while many innovative digital and mobile solutions already exist with stakeholders keen to use them and provide them to consumers, there are a number of perceived barriers that are preventing greater use of all the available technology. In particular, there was significant agreement among stakeholders that regulatory requirements can inhibit firms from using a more innovative approach in how they communicate information to consumers. Also, a number of stakeholders argued that the requirements in the Money Laundering Regulations 2007 create barriers to the use of digital and mobile solutions for the purposes of customer due diligence.
The FCA’s next key steps include:
- addressing the issues raised around communications through a Feedback Statement to its earlier Discussion Paper on smarter consumer communications (DP15/5);
- continuing to engage with HM Treasury and the Joint Money Laundering Steering Group to help them implement the Fourth Money Laundering Directive in a way that maximises its potential for digital solutions;
- seeking stakeholders’ views on the implementation of the revised Payment Services Directive through industry engagement and a consultation on the FCA’s current PSD Approach Document;
- hosting an event on payments in Spring 2016 to further engage with stakeholders on key issues;
- exploring the issues raised in the financial advice market through the Financial Advice Market Review; and
- addressing the issues raised on the use of third-party cloud providers through the FCA’s guidance consultation.