In this blog post, we round-up forthcoming developments in the UK and at EU and International levels in financial services regulation which are expected for April 2021.
In this blog post, we round-up forthcoming developments in the UK and at EU and International levels in financial services regulation which are expected for March 2021.
On 7 January 2021, HM Treasury (“HMT”) published a consultation and call for evidence on the UK’s regulatory approach to cryptoassets and stablecoins, which sets out HMT’s proposals for a new regulatory regime covering stablecoins and its approach to regulating cryptoassets more generally. The proposals follow HMT’s July 2020 consultation on bringing certain cryptoassets within the scope of the financial promotions regime (see our blog post here).
We are pleased to announce the launch of FSR Outlook 2021: Paving the Way Forward.
In this annual publication, we survey the regulatory landscape in 2021 and identify some themes that we expect to be at the core of regulatory priorities globally in the next 12 months.
2020 has been dominated by Covid-19, political uncertainty, and the preparations for Brexit – which are likely to continue to cast a long shadow over 2021. Although some second-guessing of crisis-driven responses is probably inevitable (“2020 hindsight”), the hope is that regulators will also focus on the benefits and opportunities furnished by the adoption of digital solutions in response to the pandemic, and how the financial system can best help support the global economic recovery.
Our Global Outlook for 2021 looks at nine different areas, ranging from doing something useful about culture and tackling the “alphabet soup” of ESG standards, to maintaining market integrity in the time of Covid-19, and the final countdown for LIBOR. Protecting investors through a focus on end outcomes, managing innovation in payments, and ensuring digital operational resilience are of course high on the list. Perhaps unsurprisingly, part of the regulatory response to 2020’s pandemic has been a trend towards increased regulatory intervention, and we expect the number of investigations against individuals to continue to grow, not least given continuing regulatory focus on making senior managers accountable.
View the FSR Outlook 2021 here.
HM Treasury has announced the relaunch of its independent Fintech Strategic Review (the Review). The Review, originally announced in March (but delayed due to Covid-19), will aim to identify key priority areas for focus by the industry, policymakers and regulators in order to support the continued growth and mainstream adoption of Fintech solutions in the UK. The Review will be led by Ron Kalifa OBE (the former CEO of Worldpay).
HM Treasury has announced two consultations on possible changes to the UK financial promotions regime:
- a consultation on limiting the scope of firms that can approve financial promotions of unauthorised persons; and
- a consultation on extending the financial promotions regime to include unregulated cryptoassets.
The deadline for responses to both consultations is 25 October 2020.
These consultations reflect the continued focus by the Financial Conduct Authority (FCA) on marketing and the related risks to consumers, particularly following the mini-bond scandal, as well as the continued focus on the regulation of fintechs and cryptoasset technologies. Continue reading
Following Covid-19, the message from the UK financial regulators regarding payments firms and payments innovation has stepped up. Recently, the Bank of England published a speech given by Christina Segal-Knowles (Executive Director, Financial Market Infrastructure Directorate) on 11 June in which she discussed the emerging themes and challenges for payments firms and payments innovation. Continue reading
As consumers use cash to make payments less frequently, and fintech firms offer new forms of money and new ways to make payments, central banks globally are considering how they should respond and whether they too should innovate to meet new payment needs in an increasingly digital economy.
In this blog post, we round-up forthcoming developments in the UK and at EU and International levels in financial services regulation for August 2019.