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Topic: Fintech

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Cyber-resilience: range of practices

On 4 December 2018, the Basel Committee on Banking Supervision (Basel Committee) published a report which identifies, describes and compares the range of observed bank, regulatory and supervisory cyber-resilience practices across jurisdictions. For the purpose of the report, the Basel Committee uses the Financial Stability Board’s Cyber Lexicon definition of cyber-resilience, which defines it as … Continue Reading

ECB cyber resilience oversight expectations for FMIs

On 3 December 2018, the European Central Bank (ECB) published its cyber resilience oversight expectations for financial market infrastructures (FMIs) (the Expectations). In June 2016, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published Guidance on cyber resilience for financial market infrastructures (Guidance). The Expectations provides FMIs … Continue Reading

FCA report on cyber and technology resilience

On 27 November 2018, the FCA published a report on its 2017-2018 cross-sector survey on cyber and technology resilience. The FCA surveyed 296 firms during 2017 to 2018 to assess their technology and cyber capabilities. The survey looked at key areas such as governance, delivery of change management, managing third party risks and effective cyber … Continue Reading

Select Committee inquiry – IT failures in the financial services sector

On 23 November 2018, the House of Commons’ Treasury Select Committee launched an inquiry which will focus on the common causes of operational incidents in the financial services sector, the ways in which consumers lose out as a result of such incidents, and whether regulators have the relevant skills to adequately hold people to account. … Continue Reading

FCA speech on using AI / machine learning in financial crime supervision

On 21 November 2018, the FCA published a speech delivered by Rob Gruppetta, Head of the Financial Crime Department, entitled ‘AI and financial crime: silver bullet or red herring?’.  Some of the key points to note from the speech include: whilst the building blocks of artificial intelligence (AI) have begun to emerge, sound principles for … Continue Reading

BoE speech on advanced analytics in prudential supervision

On 19 November 2018, the Bank of England (BoE) published a speech by James Proudman, (Executive Director, UK Deposit Takers Supervision) on the application of advanced analytics in prudential supervision. In the speech, Mr Proudman explores the impact of AI and advanced analytics broadly on the safety and soundness of the firms supervised by the … Continue Reading

ECB speech on cryptos, cyber and CCPs

The ECB has published a speech by Benoît Coeuré, the Chair of the Committee on Payments and Market Infrastructures (CPMI). The speech is entitled The new frontier of payments and market infrastructure: on cryptos, cyber and CCPs. The slides that accompanied the speech have also been published. Key messages in the speech include: the G20 … Continue Reading

Valdis Dombrovskis statement on regulating virtual currencies

On 13 November 2018, European Commission Vice-President Valdis Dombrovskis issued a statement at the European Parliament Plenary on regulating virtual currencies and Initial Coin Offerings (ICOs). In the statement, Mr Dombrovskis posts two questions for financial regulators to consider: Whether crypto-assets are financial instruments, and are therefore covered by financial regulation? Whether that regulation is … Continue Reading

FSB Cyber Lexicon published

On 12 November 2018, the Financial Stability Board (FSB) published the first edition of a Cyber Lexicon, which comprises a set of approximately 50 core terms related to cyber security and cyber resilience in the financial sector. The lexicon is not intended for use in the legal interpretation of any international arrangement or agreement or … Continue Reading

Cryptoassets Taskforce: final report

On 29 October 2018, the Cryptoassets Taskforce (the Taskforce), comprising of the FCA, HM Treasury and the Bank of England (BoE), published its final report on the UK’s policy and regulatory approach to cryptoassets (the Report). The Taskforce was launched by the Chancellor of the Exchequer in March 2018. The Report provides an overview of … Continue Reading

ESMA stakeholder group advises on managing risks of ICOs and crypto-assets

On 19 October 2018, the European Securities and Markets Authority (ESMA) published its Securities and Markets Stakeholder Group (the Stakeholders) own initiative report on initial coin offerings (ICOs) and crypto-assets. The report has been produced by the Stakeholders to advise ESMA on steps it can take to manage the risks of ICOs and crypto-assets on … Continue Reading

FCA Green FinTech Challenge

On 19 October 2018, the FCA published a webpage on its Green FinTech Challenge Initiative (the Challenge). The Challenge is aimed at firms developing green solutions that need specific regulatory support to bring their proposition to market. The Challenge is a pilot approach for ‘FCA Innovate’, and its outcomes will guide the FCA on whether … Continue Reading

FCA statement on digital regulatory reporting

On 17 October 2018, the FCA published Feedback Statement 18/2: Digital Regulatory Reporting (FS18/2). FS18/2 follows a call for input that the FCA launched in February 2018 regarding how technology could achieve smarter regulatory reporting. The FCA originally called this process ‘Model Driven Machine Executable Regulatory Reporting’ but renamed it as Digital Regulatory Reporting (DRR). … Continue Reading

FSB sets out potential financial stability implications from crypto-assets

On 8 January 2018, the combined market capitalisation of crypto-assets peaked at an estimated $830 billion, of which approximately 35% was attributable to bitcoin. This dropped to just over $210 billion as of 4 October 2018. The rapid price increase in 2017 elicited interest from retail investors and attracted the attention of regulated financial institutions … Continue Reading

House of Commons Treasury Committee pushes for cryptocurrency regulation

On 19 September 2018 the UK House of Commons Treasury Committee (the Committee) published its report on the possible regulation of crypto-assets (the Report). Commenting on the Report, Committee chair Rt Hon. Nicky Morgan MP argued that the crypto-assets industry is highly unregulated, which results in numerous risks for investors. Hence, with this Report the … Continue Reading

ESA Joint Committee report on automation in financial advice

On 5 September 2018, the Joint Committee of the European Supervisory Authorities (comprised of ESMA, EBA and EOPA) published a report on the results of their monitoring exercise on ‘automation in financial advice’ (the Report). The Report follows the Joint Committee’s 2015 discussion paper on automation in financial advice, and their 2016 report on the … Continue Reading

FCA publishes consultation on Global Financial Innovation Network

On 7 August 2018, a group of financial services regulators including the FCA, the Hong Kong Monetary Authority, the Autorité Des Marchés Financiers and the Ontario Securities Commission co-published a consultation document on a Global Financial Innovation Network (GFIN). The consultation document follows a proposition document published by the FCA earlier this year on the … Continue Reading

ECB publishes Services Procurement Guidelines for TIBER-EU framework

In its role as a banking supervisor, the European Central Bank (ECB) asks the largest euro area banks to report significant cyber incidents as soon as they detect them. This helps the ECB identify and monitor trends in cyberattacks, which puts it in a position to be able to react more swiftly to a potential … Continue Reading

PSR report on CMPs

On 31 July 2018, the Payment Systems Regulator (PSR) published a report on contactless mobile payments (CMPs). CMPs are in-store payments that consumers make by using apps installed on their mobile devices. The apps allow consumers to upload their card details onto the app to make payments from those devices. To technologically differentiate between a … Continue Reading

FSB report on crypto-assets

On 16 July 2018, the Financial Stability Board (FSB) has published a report describing international work on crypto-assets. The report follows a letter that FSB Chair Mark Carney sent to G20 Finance Ministers and Central Bank Governors in March noting that crypto-assets raise a host of issues around consumer and investor protection, as well as … Continue Reading

Study on competition issues in the area of financial technology

On 9 July 2018, the European Parliament’s Committee on Economic and Monetary affairs published a study, Competition issues in the Area of Financial Technology (FinTech). The study focuses on analysing potential anti-competitive factors and their impact both in the FinTech ecosystem and in concrete services. In lieu of any consensus, the study proposes FinTech services … Continue Reading