United Kingdom

Topic: Fintech

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FMLC paper on legal uncertainties arising from ICOs

On 31 July 2019, the Financial Markets Law Committee (FMLC) published a paper identifying issues of legal uncertainty arising from initial coin offerings (ICOs). The FMLC examines the legality of ICOs in different jurisdictions emphasising the lack of international harmonisation and varied approaches to regulation and considers the exploratory work required to provide certainty for … Continue Reading

FCA publishes final guidance on cryptoassets regulation

On 31 July 2019, the FCA published Policy Statement 19/22: Guidance on cryptoassets – feedback and final guidance to CP19/3 (PS19/22). In PS19/22 the FCA responds to the feedback it received to Consultation Paper 19/3: Guidance on cryptoassets (CP19/3) (our blog is here) and sets out the final guidance. The purpose of CP19/3 was to … Continue Reading

ECB letter regarding stablecoin initiatives

On 26 July 2019, the European Central Bank (ECB) published a letter from its president, Mario Draghi, to Markus Ferber MEP. In the letter Mr Draghi discusses how the European System of Central Banks (ESCB) is closely monitoring innovation in the financial sector, including stablecoin projects such as Facebook’s ‘Libra’. The ESCB also contributes to … Continue Reading

EBA report on approaches relating to FinTech activities

On 18 July 2019, the European Banking Authority (EBA) published a report illustrating the findings of an analysis on issues relating to access to the market for FinTech firms. The analysis focused on the monitoring of national developments on the regulatory perimeter; the national regulatory status of FinTech firms; and the approaches followed by Member … Continue Reading

ESMA report on the licensing of FinTech business models

On 12 July 2019, the European Securities and Markets Authority (ESMA) published a report on the status of licencing regimes of FinTech firms across the EU. The report is based on two surveys conducted by ESMA since January 2018, which gathered evidence from Member State national competent authorities (NCAs) on the licencing regimes of FinTech … Continue Reading

EBA reveals the four key trends that will affect payment institutions’ and e-money institutions’ business models

The European Banking Association (EBA) has published a report titled “The Impact of Fintech on Payment Institutions’ and E-Money Institutions’ business models” (the Report). The Report acknowledges the significant changes that have taken place in the broader Fintech landscape over the last few years, focussing on the Payment Institution (PI) and E-Money Institution (EMI) space. … Continue Reading

ECB assesses impact of FinTech on payment institutions’ and e-money institutions’ business models

On 8 July 2019, the European Banking Authority (EBA) published a thematic report on the impact of FinTech on payment institutions’ (PIs) and electronic money institutions’ (EMIs) business models. Key points in the report include: the payments landscape in the EU is undergoing significant transformation due to the introduction of the revised Payment Services Directive … Continue Reading

FCA proposes ban on sale of crypto-derivatives to retail consumers

On 3 July 2019, the FCA issued Consultation Paper 19/22: Restricting the sale to retail clients of investment products that reference cryptoassets (CP19/22). In CP19/22 the FCA are proposing to ban the sale, marketing and distribution to retail clients of derivatives and exchange traded notes (ETNs) referencing unregulated transferable cryptoassets. These measures will be applied … Continue Reading

FCA speech on regulating financial innovation

On 2 July 2019, the FCA published a speech by Christopher Woolard (Executive Director of Strategy and Competition, FCA). The speech, Regulating financial innovation – going behind the scenes, covers ‘stablecoins’ and ‘non-stablecoins’. Mr Woolard explains that market participants use ‘stablecoin’ as a broad term, which encompasses a variety of different types of cryptoassets. A … Continue Reading

BIS to set up innovation hub for central banks

On 30 June 2019, the Bank for International Settlements (BIS) approved the establishment of an innovation hub to foster international collaboration on innovative financial technology within the central banking community. The role of the hub will be to identify and develop in-depth insights into critical trends in technology affecting central banking: develop public goods in … Continue Reading

IOSCO urges authorities to use existing standards to address cyber risk

On 18 June 2019, the Cyber Task Force of the International Organization of Securities Commissions (IOSCO) published a final report that provides an overview of how its members are using three prominent and internationally recognised cyber frameworks (defined in the report as the ‘Core Standards’): National Institute of Standards and Technology Cybersecurity Framework; CPMI-IOSCO Guidance … Continue Reading

BoE, FCA and MAS announce collaboration on cybersecurity

On 13 June 2019, the Bank of England (BoE) published a press release alongside the FCA and the Monetary Authority of Singapore (MAS) regarding collaboration in the field of cyber security. Specifically, the MAS, the BoE and the FCA have announced that they will be working together to strengthen cyber security in their financial sectors. … Continue Reading

FSB report on decentralised financial technologies

On 6 June 2019, the Financial Stability Board (FSB) published a report considering the implications of decentralised financial technologies. The report considers the financial stability, regulatory and governance implications of the use of decentralised financial technologies such as those involving distributed ledgers and online peer-to-peer, or user-matching, platforms. The report focuses on technologies that may … Continue Reading

IOSCO update on 2019 work programme

On 30 May 2019, the International Organisation of Securities Commissions (IOSCO)  issued a press release following its meeting this month in which priority issues facing securities market regulators and supervisors were discussed. The priority issues include: crypto-assets. IOSCO will be publishing a consultation report on crypto-asset trading platforms, in response to a G20 request. IOSCO … Continue Reading

FSB reports on work underway to address crypto-asset risks

On 31 May 2019, the Financial Stability Board (FSB)  published a report on crypto-assets, which considers work underway, regulatory approaches and potential gaps. The report is being delivered to G20 Finance Ministers and Central Bank Governors for their meeting in Fukuoka on 8-9 June. International organisations are working on a number of fronts, directly addressing … Continue Reading

IOSCO consults on key considerations for regulation of crypto-asset exchanges

On 28 May 2019 the International Organization for Securities Commission (IOSCO) published a consultation paper on Issues, Risks and Regulatory Considerations Relating to Crypto-Asset Trading Platforms. Prepared by IOSCO’s Committee 2 on the Regulation of Secondary Markets, the consultation paper seeks stakeholder views in order to help IOSCO members evaluate the issues and risks relating … Continue Reading

FSB updates G20 on its work related to cyber incident response and recovery

On 28 May 2019, the Financial Stability Board (FSB) published a progress report on its work todate on developing effective practices for financial institutions’ response to, and recovery from, a cyber incident. As part of its work programme to enhance the cyber resilience of financial institutions, the FSB is developing a toolkit of effective practices … Continue Reading

The Cyber-Attacks (Asset-Freezing) Regulations 2019

On 20 May 2019, The Cyber-Attacks (Asset-Freezing) Regulations 2019 were made and published on legislation.gov.uk, together with an explanatory memorandum. The Regulations provide a domestic framework for the implementation of Council Regulation 2019/796 concerning restrictive measures against cyber-attacks threatening the EU or its Member States. The Council Regulation came into force on 17 May 2019. … Continue Reading

Consensus New York & Blockchain week – key takeaways

Partners from our global FinTech team flew in from Hong Kong, Vancouver, London and Dallas to join our New York team to attend Consensus and Blockchain week in NYC (13-15 May).  Consensus is an annual global conference which brings together the world’s most innovative minds to explore and debate the future of blockchain and crypto. … Continue Reading

UKJT consultation on issues underlying cryptoassets, DLT and smart contracts

On 9 May 2019, the UK Jurisdiction Taskforce (UKJT) published a consultation on identifying the key issues of legal uncertainty regarding cryptoassets, distributed ledger technology (DLT) and smart contracts. The UKJT is one of the six taskforces of the LawTech Delivery Panel. Its objective is to demonstrate that English law and the jurisdiction of England and … Continue Reading