On 8 March 2024, the FCA issued a report by the Synthetic Data Expert Group which discusses how synthetic data can be used to overcome data challenges and its practical applications in financial services. In particular the report focuses on 3 key themes across the data lifecycle: The FCA set up the Synthetic Data Expert … Continue Reading
On 7 March 2024, the Bank of England’s (BoE) Executive Director for Data and Analytics Transformation and Chief Data Officer, James Benford, delivered a speech on the steps being taken by the BoE to update its data and analytics strategy. Mr Benford explained that the BoE is carrying out a seven-step approach to refresh its … Continue Reading
On 6 March 2024, HM Treasury (HMT) published a consultation setting out the Government’s proposal for a new innovative market that aims to allow private companies to scale and grow, and to boost the pipeline of future initial public offerings (IPOs) in the UK. The consultation outlines a proposal for a new platform that will … Continue Reading
In our 2024 FinTech Outlook, our lawyers from across Europe, the Middle East, Asia and the US share their insights on what to expect across the regulatory landscape in relation to FinTech and cryptoassets in 2024.… Continue Reading
On 16 February 2024, the Government published correspondence from the Secretary of State for Science, Innovation and Technology, Michelle Donelan, and the Economic Secretary to the Treasury and City Minister, Bim Afolami, asking a set of regulators to publish an update on their strategic approach to artificial intelligence (AI). The correspondence included letters to the … Continue Reading
On 15 February 2024, the Office of Financial Sanctions Implementation (OFSI) published guidance on ransomware and financial sanctions, covering cyber sanctions legislation, sectoral sanctions risk and licensing. The guidance is intended to assist with the UK Government’s aim of disrupting and reducing the profitability of ransomware through using financial sanctions against the ransomware threat actors … Continue Reading
On 6 February 2024, the Government published its response to the March 2023 consultation on a pro-innovation approach to Artificial Intelligence (AI) regulation. The consultation response sets out a summary of the evidence the Government received along with its formal response and next steps for the AI regulation framework. The consultation sought views on the … Continue Reading
On 25 January 2024, the Bank of England (BoE) and HM Treasury (HMT) published their response to the consultation on a ‘digital pound’, which was launched in February 2023 and received over 50,000 responses. In the response they confirmed that no final decision has been made to pursue a digital pound, also known as a … Continue Reading
On 23 January 2024, the Bank for International Settlements’ (BIS) Innovation Hub announced its first six projects for its 2024 work programme. The projects focus on safety and security, green finance and next generation financial infrastructures. Additional work on advanced data analytics and tokenisation are also planned. Head of the BIS Innovation Hub Cecilia Skingsley … Continue Reading
In late 2023, HM Treasury set out its final proposals for the UK’s future financial services regulatory regime for cryptoassets, confirming its intention to bring a number of crypto activities into the regulatory perimeter for the first time. A week after HM Treasury’s final proposals were published, the FCA and the Bank of England both … Continue Reading
On 18 December 2023, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 (SI 2023/1398) were published, along with an explanatory memorandum. The Regulations create the first financial market infrastructure (FMI) sandbox, the Digital Securities Sandbox (DSS), which is intended to allow firms and the regulators to test the use of new … Continue Reading
On 19 December 2023, the International Organization of Securities Commissions (IOSCO) published a final report with policy recommendations to address market integrity and investor protection issues in decentralised finance (DeFi). The policy recommendations, which are principles-based and outcomes-focused, are addressed to relevant authorities and complement IOSCO’s policy recommendations for crypto and digital assets markets issued … Continue Reading
On 19 December 2023, the Financial Conduct Authority (FCA), the Bank of England (BoE) and the Prudential Regulation Authority (PRA) published the latest annual CBEST thematic report. CBEST tests the cyber resilience of firms and financial market infrastructures (FMIs) through live testing that mimics the actions of cyber attackers. The report, which contains cyber resilience … Continue Reading
On 14 December 2023, the European Securities and Markets Authority (ESMA) issued a Discussion Paper on MiFID II investor protection topics linked to digitalisation. The Discussion Paper discusses the main trends in digitalisation that are linked to the MiFID II investor protection topics. MiFID II aims at being technology neutral. This means that market participants … Continue Reading
On 11 December 2023, the European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA) – together, the European Supervisory Authorities (ESAs) – published a report on ‘innovation facilitators’, a term that encompasses innovation hubs and regulatory sandboxes. The report identifies several benefits and challenges relating to … Continue Reading
On 8 December 2023 the European Supervisory Authorities (ESAs) launched public consultation on a second package of technical standards under Digital Operational Resilience Act (DORA). This includes the following draft regulatory technical standards (RTS), implementing technical standards (ITS) and guidelines: RTS and ITS on content, timelines and templates on incident reporting By way of background, … Continue Reading
On 24 November 2023, a Technology Working Group of industry experts established by HM Treasury’s Asset Management Taskforce issued a report, UK Fund Tokenisation – A Blueprint for Implementation. Tokenisation refers to the issuing of units that are recorded on a distributed ledger, as opposed to units that are recorded on more traditional systems of … Continue Reading
On 24 November 2023, the European Banking Authority (EBA) issued a public consultation on new guidelines on preventing the abuse of funds and certain crypto-asset transfers for money laundering and terrorist financing purposes. Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets recasts Regulation (EU) 2015/847 and extends its scope to the … Continue Reading
On 23 November 2023, UK Finance published a report on the impact of artificial intelligence (AI) in financial services, including opportunities, risks and policy considerations. The report examines the state of play of AI in the financial sector – where it is being deployed, where it shows promise for the future and how to make … Continue Reading
On 22 November 2023, HM Treasury (HMT) published its response to the July 2023 consultation on the Digital Securities Sandbox (DSS). The response sets out the Government’s final approach to implementing the DSS, which will facilitate the use of digital assets in financial markets. The DSS will be the first Financial Market Infrastructure (FMI) Sandbox … Continue Reading
On 15 November 2023, the Basel Committee on Banking Supervision issued a discussion paper which provides a high-level assessment of the supervisory and financial stability implications of digital fraud for the global banking system. It is structured around three broad sets of questions: The discussion paper does not make a formal distinction between retail and … Continue Reading
On 9 November 2023, the European Securities and Markets Authority (ESMA) announced that it is changing its Union strategic supervisory priorities (USSPs) to focus on cyber risk and digital resilience alongside ESG disclosures. With this new priority, EU supervisors will put greater emphasis on reinforcing firms’ information communication technology risk management through close monitoring and … Continue Reading
On 6 November 2023, the Financial Conduct Authority (FCA) and Bank of England (BoE) published discussion papers on their proposed approach to regulating stablecoins, and the Prudential Regulation Authority (PRA) published a Dear CEO letter on innovative uses of deposits, e-money and stablecoins. The FCA, BoE and PRA also published a joint “roadmap paper” aimed … Continue Reading
On 1 November 2023, the International Regulatory Strategy Group (IRSG) (a joint venture between the City of London Corporation and TheCityUK) published a policy paper on a coherent and interoperable international regulatory framework on artificial intelligence (AI). In this policy paper, the IRSG stresses the importance of creating a globally coherent approach in order to … Continue Reading