Tag: FinTech

2024 FinTech Outlook

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

European Commission adopts Delegated Regulations on oversight fees and critical ICT third-party service providers

On 22 February 2024, the European Commission (Commission) adopted two Delegated Regulations supplementing the Regulation on digital operational resilience for the financial sector (DORA): Both Delegated Regulations enter into force on the twentieth day following their publication in the Official Journal of the EU. They shall be directly applicable in all Member States.… Continue Reading

Commission adopts MiCAR Delegated Regulations on fines, fees, classification of ARTs and EMTs as significant and product intervention powers

On 22 February 2024, the European Commission (Commission) adopted the following Delegated Regulations under the EU Markets in Crypto-Assets Regulation (MiCAR): The Council of the EU and the European Parliament will scrutinise the Delegated Regulations. If neither the Council of the EU nor the European Parliament objects, the Delegated Regulations will be published in the … Continue Reading

Government writes to FCA and BoE on delivering a pro-innovation approach to AI regulation

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

OFSI publishes guidance on ransomware and financial sanctions

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

Government publishes response to consultation on ‘A pro-innovation approach to AI regulation’

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

EBA chair speech – Digital finance: Confidence and resilience as a foundation for well-functioning financial markets

On 30 January 2024, the European Banking Authority (EBA) published a speech by its chair José Manuel Campa on digital finance, as well as confidence and resilience as a foundation of well-functioning financial markets.  Before exploring digital finance, Mr Campa shared some observations on the theme of competitiveness. He emphasised that competitiveness equates to the … Continue Reading

Joint ESAs report on 2023 stocktaking of BigTech direct financial services provision

On 1 February 2024, the European Banking Authority published a report on 2023 stocktaking of BigTech direct financial services provision in the EU. In 2023 the European Supervisory Authorities (ESAs) conducted a cross sectoral stocktake of BigTech subsidiaries carrying out financial services in the EU, through the European Forum for Innovation Facilitators (EFIF). The work … Continue Reading

ESMA consults on MiCA guidelines

On 29 January 2024, the European Securities and Markets Authority (ESMA) launched public consultations on two sets of guidelines it is mandated to develop for the purpose of the application of the Regulation on Markets in Crypto-Assets (MiCAR). The draft guidelines cover reverse solicitation and the qualification of crypto-assets as financial instruments. The following provides … Continue Reading

Response to BoE and HMT Consultation Paper – The digital pound: A new form of money for households and businesses?

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

BIS Innovation Hub announces first six projects for 2024 work programme

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

New briefing note: The future financial services regulatory regime for cryptoassets in the UK

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

Updated SFC and HKMA guidance for intermediaries’ on VA-related activities and circular on SFC-authorised VA funds

Background On 22 December 2023, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued an updated joint circular on intermediaries’ virtual asset-related activities (Joint Circular) with appendices.  The Joint Circular supersedes the previous joint circular of 20 October 2023 (October Joint Circular). The Joint Circular was issued on the same … Continue Reading

HKMA and FSTB consult on regulatory regime for stablecoin issuers and announce new sandbox arrangement

On 27 December 2023, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued a public consultation paper on their legislative proposal to regulate issuers of stablecoin. The Hong Kong Government has decided that, in light of the important roles played by stablecoins in the Web3 and virtual … Continue Reading

HKMA and FSTB consult on regulatory regime for stablecoin issuers and announce new sandbox arrangement

On 27 December 2023, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued a public consultation paper on their legislative proposal to regulate issuers of stablecoin. The Hong Kong Government has decided that, in light of the important roles played by stablecoins in the Web3 and virtual … Continue Reading

The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023

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

IOSCO final report with policy recommendations for decentralised finance

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

FCA, BoE and PRA publish annual CBEST thematic report

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

ECON report on FIDA proposal

On 15 December 2023, the European Parliament’s Economic and Monetary Affairs Committee published a draft report on the proposed Regulation on a framework for financial data access (FIDA). The FIDA proposal seeks to enable consumers and firms to more efficiently control access to their financial data beyond payments thereby allowing them to benefit from financial … Continue Reading

ESMA Discussion Paper on MiFID II investor protection topics linked to digitalisation

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

ESAs publish recommended steps to improve activities of innovation facilitators across EEA

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

ESAs consult on second package of DORA technical standards

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

FCA, PRA and BoE consult on operational resilience: critical third parties to the UK financial sector

On 7 December 2023, the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA) and Bank of England (BoE) jointly published a Consultation Paper (CP) on Operational resilience: Critical third parties to the UK financial sector (PRA CP26/23 and FCA CP23/30). The CP sets out the proposed requirements to be established in rules and accompanying expectations for … Continue Reading

Technical Working Group publishes report on fund tokenisation

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
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