In June 2018, a group was set up by the European Commission comprised of financial sector experts, and today (13 December) it finally published a report entitled 30 Recommendations on Regulation, Innovation and Finance.
The group, known as the Expert Group on Regulatory Obstacles to Financial Innovation, was tasked with reviewing the application and suitability of the legal and regulatory framework in the field of fintech.
In today’s report, the group recommends action in four broad areas:
- Responding to new and changed risks caused by the use of innovative technologies such as AI and distributed ledger technology
- Removing fragmentation across the EU and ensure a level playing field between different participants in the financial services sector as they leverage new technologies
- Reconciling data protection with the opportunities offered by fintech
- Considering the potential impact of fintech on consumers, from the perspective of financial inclusion and the ethical use of data
Inconsistent legal framework
Dr Philipp Paech, associate professor of financial law at the London School of Economics, served as chairman of the Expert Group. Commenting on the publication of the report, he said: “Much of what is called ‘fintech’ is already covered by EU law, albeit not very consistently.”
Paech added that there are only a few entirely new risks to consider, with big tech companies such as Google and Amazon posing the biggest challenges in regulation. Another particular challenge is the implementation of the data economy in financial services.
“The EU needs common answers to these questions, to foster an environment to support the scaling up of fintech across the EU and homegrown global champions, and to remain amongst the global standard setters in finance, in particular with respect to consumer protection.”
The group is calling on policy makers to act on the potential of fintech ...
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