17 October 2017
visit www.response.ncr.com

UK calls for global fintech regulations

11 April 2017  |  16172 views  |  1 FCA

The UK's Financial Conduct Authority (FCA) has called for an international regulatory framework to be applied to fintech startups in order to prevent a 'Wild West' approach to governance of the sector.

In particular, the FCA is concerned that as different jurisdictions compete for fintech business, regulatory standards could suffer - not least in terms of the number of regulatory 'sandboxes' employed by different watchdogs, all with their own rules and standards

The comments were made by Christopher Woolard, the FCA's head of strategy and competition, at the Innovate Finance Global Summit in London on Monday.

The UK was the first to develop a sandbox for fintech startups back in 2015, providing banks and startups with a 'safe space' in which to test new products and services, free from normal regulatory constraints

The concept has been widely copied by other jurisdictions, prompting Woodard's concern that "a Wild West version could emerge which runs entirely counter to our ambitions" and risks "diminishing outcomes for consumers".

"We also believe that a sandbox that fails to prepare firms to join the regulated market will not foster firms that succeed long-term", added Woolard. "We also see potential risks to the reputation of and trust in financial innovation if there are examples of global failures in the future."

The FCA accepts that there is unlikely to be one standard that fits all but building "common understanding and stronger international co-operation" around innovation will "help secure the long-term future of the industry" said Woolard, adding that the UK will be working with both the G20 and IOSCO to develop more global consensus around the issue.

Comments: (1)

Scott Mills
Scott Mills - William Mills Agency - Atlanta | 12 April, 2017, 14:00

Good luck with that...might want to go ahead without the U.S.  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Innovate Finance issues call for input on industry sandbox

Innovate Finance issues call for input on industry sandbox

10 February 2017  |  7131 views  |  0 comments | 5 tweets | 1 linkedin
Abu Dhabi opens fintech RegLab

Abu Dhabi opens fintech RegLab

02 November 2016  |  6206 views  |  0 comments | 3 tweets | 14 linkedin
Malaysia sets out fintech sandbox framework

Malaysia sets out fintech sandbox framework

19 October 2016  |  16281 views  |  0 comments | 9 tweets | 5 linkedin
FCA to kickstart sandbox with 24 applicants

FCA to kickstart sandbox with 24 applicants

22 September 2016  |  12078 views  |  0 comments | 34 tweets | 17 linkedin
Thailand sets up fintech sandbox

Thailand sets up fintech sandbox

22 September 2016  |  9043 views  |  0 comments | 19 tweets | 8 linkedin
HKMA to set up fintech sandbox and innovation hub

HKMA to set up fintech sandbox and innovation hub

06 September 2016  |  7838 views  |  0 comments | 15 tweets | 12 linkedin
Singapore regulator proposes fintech sandbox

Singapore regulator proposes fintech sandbox

06 June 2016  |  8463 views  |  1 comments | 15 tweets | 22 linkedin
Asic to establish regulatory sandbox

Asic to establish regulatory sandbox

04 May 2016  |  7091 views  |  0 comments | 5 tweets | 9 linkedin
FCA invites businesses to play in its regulatory sandbox

FCA invites businesses to play in its regulatory sandbox

10 November 2015  |  7024 views  |  0 comments | 18 tweets | 17 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.temenos.comvisit www.vasco.comvisit www.innotribe.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14914 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8194 views comments | 15 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7542 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
6825 views comments | 13 tweets | 7 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6158 views comments | 8 tweets | 16 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job