Quarter 3 2016 – FinTech Compliance News Summary

By admin | FinTech, News | 0 Comments

Call for input to the post-implementation review of the FCA’s crowdfunding rules

  • FCA: 8th July 2016
  • The FCA wants to gather feedback from all interested parties relating to the loan-based crowdfunding sector about recent developments across the sector. The FCA has identified a number of potential concerns in regard to these developments.


FinTech firms all for regulation

  • The Sun Daily: 8th July 2016
  • The Financial Technology Enable Group (FTEG), part of Bank Negara Malaysia, have created and introduced a FinTech regulatory framework to facilitate the adoption of FinTech in the country. It is hoped the regulations introduced will help firms gain clarity, lower barriers for them and accelerate them.


Row emerges over digital advice regulations

  • Financial Review: 11th July 2016
  • The Financial Planning Association have proposed to the Australian Securities and Investments Commission, that robo-advisers must appoint independent actuaries to monitor algorithms but robo-advisers say it will make the digital advice unworkable.


Simon Collins: The future of FinTech regulation

  • Money Marketing: 12th July 2016
  • The FCA has set up Project Innovate which includes a regulatory sandbox for firms to test their new products and services. There is also the Advice Unit which is the regulatory driving force behind the development of robo-advice.


RegTeh – The Rising New Flavour of FinTech Innovation

  • Finextra: 15th July 2016
  • The rise of RegTech is in response to the growing challenges of regulatory compliance. It is defined as innovative application of technology to meet the challenges of the regulatory requirements and be compliant.


Thomson Reuters and Imperial College form FinTech and RegTech research partnership

  • Finextra: 21st July 2016
  • Thomson Reuters and Imperial College London are pooling their expertise for joint research projects into the big data challenges facing the FinTech and RegTech industries. Researchers from Thomas Reuters and the Data Science Institute at Imperial will share financial market data and machine-learning help respectively.


BoT lines up FinTech regulation

  • Bangkok Post: 22nd July 2016
  • The rise of FinTech in Thailand is causing the central bank to think about measures to prevent risk to financial stability and ensure consumer protection, according to central bank governor Veerathai Santiprabhob.


The regulated evolution of Peer-to-Peer lending in China

  • Enterprise Innovation: 25th July 2016
  • According to the latest report on alternative financing published by the University of Cambridge, KPMG and others, the online alternative finance market in China has grown to $101.7 billion in 2015 and Peer-to-Peer lending, both conusmer and business, account for 91% of this value.


Candadian Banks Experiement With Blockchain Technology; FinTech Sector Calls for Regulatory Certainty

  • Nasdaq: 29th July 2016
  • Canada’s central bank, Bank of Canada, along with five other Canadian banks are experimenting with blockchain technology as the demand for digital payments systems increase. The CMSBA, representing 800 small- to medium-businesses, is petitioning with FINTRAC to clearly define money services businesses.


Opportunity for FinTech firms as UK regulator calls for payments reform

  • Tech City News: 30th July 2016
  • The Payment Systems Regulator (PSR) calls for the UK’s payments infrastructure to undergo reform to increase the competition and meet consumer requirements.


China and UK Collaborate On New Financial Regulatory Framework

  • News BTC: 31st July 2016
  • Post-Brexit, the UK is establishing connections with China to undergo a regulatory collaboration – as regulation plays a key role in the world of finance. As the FinTech and Bitcoin sectors gather momentum many guidelines will need to be revised and updated.


Hogan Lovells Launches Tool for FinTech Firms to Better Understand & Navigate FCA

  • Crowdfund Insider: 4th August 2016
  • International law firm, Hogan Lovells, launches “Regulatory Accelerator” – an online tool to help FinTech firms better understand FCA regulations. The tool was created in conjunction with Innovate Finance and is free to all members.


FinTech Companies Facing Potentially Greater Oversight

  • Morning Consult: 4th August 2016
  • The Consumer Financial Protection Bureau in Washington plans to crack down on high-street payday lenders and other providers of high-interest loans. This leaves lower income and high-risk borrowers with limited access to capital and it also means there will be more competition with the addition of new regulations.


Apple, Google, Amazon: Current Regulatory Requirements Protect Incumbents from FinTech Competitors

  • Crowdfund Insider: 16th August 2016
  • Financial Innovation Now is a unique alliance of Apple, Google, Amazon, Intuit and Paypal to lobby on FinTech and financial regulations against Capitol Hill. These tech giants formed this group as they recognised the need to make policy makers and regulators understand the FinTech sector.


State Regulators Balk at OCC FinTech Charter

  • American Banker: 20th August 2016
  • With the Office of the Comptroller of the Currency evaluating the possibility of a nationwide charter for certain FinTech firms, state regulators are voicing concerns that a charter could cut into their authority.


Singapore to update electronic payment regulations in FinTech drive

  • Asia One Business: 21st August 2016
  • Singapore will make regulatory changes to facilitate the use of electronic payments as the city-state aims to become a major centre for FinTech and electronic payments. The Monetary Authority of Singapore will revise current remittance and payments law to a single new legislation.


How FinTech can list the insurance sector

  • livemint: 22nd August 2016
  • The Insurance Regulatory and Development Authority of India have drafted new regulations for insurance e-commerce to lower the cost of transacting insurance business.


Banks resist FinTech push for open data regime

  • Financial Review: 22nd August 2016
  • FinTech Australia argues if banks release customer data to competitors then customer service would improve to create better-priced products. As a result, regulators are looking into a new regime alongside “open APIs” (application programming interfaces).


Abu Dhabi plans FinTech regulation lab

  • Banking Technology: 1st September 2016
  • The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market is looking for public feedback and comments for its proposed FRSA Regulatory Laboratory (RegLab). The RegLab will be a controlled environment to develop and test innovative FinTech solutions.


The EU’s new regulatory environment might help FinTech flourish

  • Tech Crunch: 4th September 2016
  • The EU’s effort to regulate financial markets has opened new opportunities for global FinTech firms looking to enter the lucrative 28-country marketplace. While over-regulation can stifle growth, it gives FinTech a clearly defined regulatory framework to work to.


Australia’s emerging RegTech scene could save FinTech from itself

  • Geektime: 6th September 2016
  • The pace of FinTech is moving so quickly that regulators are struggling to catch up. Therefore it is important for the relationship between financial institutions and regulators to be coherent and cost-effective. This is where the RegTech sector comes in and provides promising solutions to keep businesses flowing smoothly.


Hong Kong to launch banking FinTech ‘sandbox’ as rivals pull ahead

  • Reuters: 6th September 2016
  • Hong Kong regulators have announced it has launched a regulatory regime known as a “sandbox” for financial technology innovation in the banking sector, amid fears the city is losing ground to China, Australia and Singapore in the FinTech race.


Chinese fintech players eye U.K., says FinTech Compliance chief

  • The Deal: 6th September 2016
  • Chinese FinTech players have stepped up plans to enter the UK since Britain’s vote to exit the EU, in the hope of a free trade agreement between the two nations, according to a FinTech regulation expert.


The Regulatory Framework of the Chinese FinTech Industry

  • Finance Magnates: 7th September 2016
  • The Chinese government want to steer their reputation towards modern technologies and solutions therefore giving FinTech the opportunity to rise. Chinese regulators are updating their regulatory framework, for instance, the Peer-to-Peer market in now finally regulated in China.


BoE says won’t stifle innovation as wrestles with FinTech

  • Reuters: 9th September 2016
  • The Bank of England will not “stifle” innovation in FinTech with new rules as it seeks to get to grips with its impact. Victoria Cleland, the bank’s Chief Cashier, said a priority for the central bank this year was devising its regulatory approach to so-called FinTech.


UK regulators are the most FinTech friendly

  • Financial Times: 12th September 2016
  • The UK also topped a recent global survey, compiled by professional services firm EY, as the most FinTech-friendly jurisdiction, with the industry generating £6.6 billion in revenues and employing 61,000 people in 2015.


Bank Negara’s FinTech rules almost ready

  • The Star: 21st September 2016
  • Bank Negara Malaysia’s guideline on Fintech is almost ready to be finalised, said Governor Datuk Muhammad Ibrahim. Bank Negara Malaysia hope FinTech can positively disrupt financial markets to increase competition and lower costs, all in the best interest of consumers.


Thailand sets up FinTech sandbox

  • Finextra: 22nd September 2016
  • Thailand is the latest country preparing to open a FinTech regulatory sandbox, with the central bank set to invite firms to participate early next year. The sandbox will allow developers working on lending, payment and money-transfer services and products to experiment for up to a year.


Prudential Approach for IFPRU investment firms open letter

  • FCA: 22nd September 2016
  • In an open letter from the FCA, all IFPRU investment firms must re-evaluate their Internal Capital Adequacy Process (ICAAP) to determine their capital requirements.


Sandbox Bill Announced For FinTech, Gov Regulations

  • com: 23rd September 2016
  • To make sure the US doesn’t lose potential FinTech business opportunities to the UK, a new House bill has been introduced. The aim of this new bill is to keep FinTech companies and innovation stateside and is a direct aim against losing financial innovation to the UK’s growing “sandbox” regulatory program.


Japan banks target FinTech startups after law change

  • Financial Times: 25th September 2016
  • Japan’s biggest banks are looking to pour hundreds of millions of dollars into FinTech startups after the abolition of a law that prevented them from owning more than 5 per cent of a technology company.


Why FinTech needs to shake its compliance glitch

  • Citywire: 26th September 2016
  • Compliance shouldn’t be an afterthought for FinTech firms, says Gilbert van Roon, who outlines his do’s and don’ts for any FinTech firms looking to get authorised by the FCA or any other regulatory body.


New EU laws legitimise FinTech challengers

  • Financial Times: 26th September 2016
  • FinTech entrepreneurs have been given a boost from an overhaul of EU legislation that regulates the payment services market. The rule change states FinTech firms have the right to be viewed as legitimate competitors to banks. The rule change is specifically designed to promote competition with banks when it comes to innovative online services.


FinTech Upstart LendUp Fined by CFPB, California Regulator

  • The Wall Street Journal: 28th September 2016
  • Fintech startup LendUp was fined by the Consumer Financial Protection Bureau and a California state regulator over widespread violations of payday- and installment-lending laws. LendUp have agreed to pay $2.7 million in a settlement.