Helping build a broader understanding of the FCA across the Fintech community
Starting with a morning event on the 16th of January and working with the FCA team in Edinburgh. The session will explain the FCA’s approach to regulation with the team outlining the way the FCA works and share current priorities.
If you’re a Scottish fintech sign up here to register your interest for that event.
The saying goes time flies when your having fun. Since joining FinTech Scotland I’ve come to fully realise the absolute truth behind that expression. I can’t believe it’s been 9 weeks since I joined the team. It’s been a whirlwind of meet ups, introductions, meetings and discussions. On top of a few pre-Christmas get togethers and events!
I want to say a huge thank you for the support and collaboration you’ve shown me as I stepped into the wonderful world of FinTech Scotland. One thing is for sure – its a vibrant ecosystem that will continue to go from strength to strength because of the collaboration and drive of all involved and its a real privilege to be part of this.
The ambition across the community is immense. I think it ranges from driving efficiency, lowering costs and strengthening existing businesses through to more disruptive innovations seeking to build diversity, design unique products and drive consumer inclusion.
Whatever the ambition it’s likely there is a need to think about regulation – not perhaps the most exciting topic to raise in the run up to Christmas – but useful to note the event planned for January that aims to provide a solid insight into how the FCA operates.
The role of the regulator is broad and its worthwhile understanding its remit, how it works and how best to engage with, and navigate the organisation. The event on the 16th of January will help with this.
The FCA’s view on innovation is well documented. It is committed to supporting innovation in the interests of consumers. And the work the FCA does is focused on delivering better outcomes for the markets it regulates.
I look forward to working with you in 2019 and will welcome input and feedback on other subjects and topics that would be helpful to hear more about from a regulatory perspective. In the meantime I’ll look forward to seeing you on the 16th of January (if not before).
Wishing all a very FintechMas’ and Innovative New Year.
A journey through the FCA regulatory sandbox
The Financial Conduct Authority (FCA)’s regulatory sandbox has now been in place for two years, and has continued to draw in innovative firms keen to test their business models, products and services in the market.
The FinTech team in Deloitte’s EMEA Centre for Regulatory Strategy, in collaboration with Innovate Finance, interviewed several current and previous FCA sandbox participants to seek their views on their sandbox journeys.
The result is A journey through the FCA regulatory sandbox: the benefits, challenges, and next steps.
It highlights the key themes, challenges, unexpected benefits and broader observations that firms expressed in relation to their sandbox journey, including their views of what the FCA’s next steps should be.
The unequivocal message is that the FCA sandbox has delivered real value to firms. In particular, being accepted into the sandbox and proving the underlying technology in a live environment has helped firms to better understand and fine tune their business models. Many also believe that the sandbox journey increased their credibility with both investors and customers.
Yet, while the usefulness of the sandbox is undisputed, the report also highlights areas where there is still room for improvement.
Overall, this report should make compelling reading for anyone considering a sandbox application.
FCA consultations on Innovation PSD2
Article written by Nicola Anderson, Senior Manager Retail Banking Supervision at the FCA.
Nicola just joined FinTech Scotland on a 1 year secondment.
After a slightly delayed start I’m delighted to have arrived at Fintech Scotland and I’m looking forward to being part of the team there for the next year.
Thanks to Stephen, Mickael and Shery for making me feel so welcome and part of the team. I’ve been out and about most of the week, meeting stakeholders and learning about the work, the innovation, collaboration and general mood of optimism! I’m looking forward to more of the same over the coming weeks and hope to meet many of the Fintech businesses in the next few weeks.
One point of interest has come up this week that I wanted to mention. I’m sure you’re already aware that the FCA has published a couple of consultation papers relevant to Fintech, Innovation and PSD2. Both papers are still open for views or responses, and links to both are attached below. The FCA welcomes input and perspective from interested parties and in particular those with experience on the subject. Through gathering views, next steps and further direction can be shaped in an informed and useful way. You can feed back directly on some or all of the questions posed in each paper.
PSD 2 consultation paper – closes on 12th October. The paper is focuses on:
1. The Regulatory Technical Standards for strong customer authentication and common and secure open standards of communication (SCA-RTS).
2. Domestic implementation before the EBA exemption guidelines are finalised
3. New fraud reporting requirements that will affect the data collected and reported by all PSPs
In addition the FCA is taking the opportunity to update its Payment Services and E-Money Approach Document guidance to reflect other legislative changes and clarify existing expectations based on experience of the regime (eg, of processing applications) since September 2017. These proposed amendments and additions are in Annex 3 of this consultation paper
Global Financial Innovation Network (GFIN) – deadline for responses is 14 October.
https://www.fca.org.uk/publication/consultation/gfin-consultation-document.pdf
This consultation sets out three main functions of the GFIN:
1. Act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models:
2. Provide a forum for joint policy work and discussions; and
3. Provide firms with an environment in which to trial cross-boarder solutions.
As part of consultation the FCA is seeking views on the mission statement for GFIN, its proposed functions, and where it should prioritise activity.
Do contribute to both or one of the consultations if you can and think it’s relevant to your business.
Best
Nicola