FinTech Action Plan
15 March 2018
The FinTech revolution has been acknowledged by the European Commission following the release of an Action Plan specifically catered to the digital innovation industry.
Given the growth that the financial industry has seen in recent years, it comes as no surprise that the industry is now looking towards digital technologies to take it towards a whole new level. Such approach that is being taken by the European Commission will certainly incentivise innovation in technology, in order to keep up with on-going developments in the financial industry, both from a regulatory point of view as well as for operational purposes.
- The FinTech Action Plan sets out a number of goals and objectives which it hopes to achieve in the years to come, namely:
- To enable innovative business models to scale-up across the EU, through clear and consistent licensing requirements to be achieved through a proposed European passporting regime, which will be utilised by those market players who decide to operate as European crowdfunding service providers;
- To increase competition and cooperation between market players through common standards and interoperable solutions, clearly recognising the need for greater standardisation in blockchain and distributed ledger technologies;
- To facilitate the emergence of innovative business models across the EU, by putting in place mechanisms which encourage and clear the way for such innovative entities;
- To review the suitability of EU rules and to ensure safeguards for new technologies in the financial sector, with the aim of avoiding to have the innovation of such technologies being in breach of existing regulations;
- To remove obstacles to cloud services by developing cross-sectoral self-regulatory codes which would in turn facilitate switching between cloud service providers;
- To enable FinTech applications with the EU blockchain initiative by working on a comprehensive strategy which considers all applicable legal implications relating to DLT and blockchain;
- To build capability and knowledge among regulators and supervisors in an EU FinTech Lab which will be established to raise awareness to increase both regulatory and supervisory knowledge about new technologies;
- To leverage technology to support the distribution of retail investment products across the EU, leading to an increase in choice for retail investors including added credibility through the use of technology that ensures information is complete, comparable and easily accessible; and
- To enhance the security and integrity of the financial sector, by prioritising Cybersecurity and adding credibility to products, through a proposed EU certification framework for ICT security products and services.
BDO Malta will continue to keep up to date with all the latest developments affecting this new-emerging industry, both on a domestic and international scale.
Should you be looking to establish your new FinTech project in Malta or are looking for services to provide to your already existing business, our Blockchain Champions Dr Chris Agius and Josef Mercieca can provide you with the required level of expertise and enthusiasm to take your operations to the next level.