20 January 2018
visit www.ebaday.com

European Commission makes fintech a priority in supervisory shakeup

20 September 2017  |  12201 views  |  0 EU building, Brussels

The European Commission is proposing to reform financial supervision across the EU with a renewed focus on new technology developments and the promotion of the emerging fintech sector.

The Commission says the reforms will pave the way for further financial integration and a full Capital Markets Union, to promote jobs, growth and investments in Europe.

The proposals also include steps to foster the development of financial technologies and to make sure that sustainability considerations are systematically taken into account in supervisory practices at the European level.

The measures follow a public consultation undertaken by the Commission between March and June this year which sought feedback on the impact of new technology developments on the financial service sector and which received 266 responses from stakeholders.

Valdis Dombrovskis, vice president for Financial Stability, Financial Services and Capital Markets Union says: "Financial markets are changing fast. We are seeing renewed cross-border integration, new opportunities in fintech and a boom in sustainable and green finance. The EU needs to act as one player so that we can stay ahead of the curve. More integrated financial supervision will make the Economic and Monetary Union more resilient. These pragmatic proposals will also make it easier for our companies to operate cross-border and build consumer trust."

He says the proposals will improve the mandates, governance and funding of the the three European Supervisory Authorities (ESAs)in banking (EBA), securities and financial markets (Esma), and for insurance and pensions (European Insurance and Occupational Pensions Authority, EIOPA).

As part of the shake up, the ESAs will be tasked with prioritising fintech and coordinating national initiatives to promote innovation and strengthen cybersecurity.

"They will take account of technological innovation in all the tasks they perform," says the Commission.

In particular, the ESAs will be tasked with coordinating national technological innovation instruments and tools - such as innovation hubs or ‘sandboxes' - set up by national supervisors.

"As financial services become more technology and data dependent, regulators and supervisors must be familiar with these technologies and be able to accommodate them," states the Commission. "As part of the Capital Markets Union, the Commission is working on a comprehensive strategy setting out what detailed actions must be taken to address these challenges and allow for an integrated market for digital financial services without constraints to economies of scale and scope."

A full action plan to deal with fintech-related issues is expected to be unveiled early next year.

Comments: (0)

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

Commission takes aim at EU-wide currency exchange costs

Commission takes aim at EU-wide currency exchange costs

25 July 2017  |  8161 views  |  0 comments | 13 tweets | 18 linkedin
EBA rejects Commission amendments on screen scraping under PSD2

EBA rejects Commission amendments on screen scraping under PSD2

30 June 2017  |  24370 views  |  16 comments | 46 tweets | 63 linkedin
EC plans blockchain 'observatory'

EC plans blockchain 'observatory'

21 April 2017  |  24859 views  |  0 comments | 11 tweets | 16 linkedin
European Commission opens public consultation on fintech

European Commission opens public consultation on fintech

23 March 2017  |  24744 views  |  0 comments | 56 tweets | 32 linkedin
European Commission sets up fintech task force

European Commission sets up fintech task force

17 November 2016  |  15870 views  |  0 comments | 38 tweets | 44 linkedin
EC backs fintech in capital markets

EC backs fintech in capital markets

14 September 2016  |  8646 views  |  1 comments | 18 tweets | 7 linkedin
EC offers cash for fintech study

EC offers cash for fintech study

26 July 2016  |  9126 views  |  0 comments | 18 tweets | 7 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.thomsonreuters.infovisit www.capgemini.com

Top topics

Most viewed Most shared
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
12415 views comments | 33 tweets | 38 linkedin
BofA leads on blockchain patentsBofA leads on blockchain patents
7826 views comments | 12 tweets | 12 linkedin
Standard Chartered establishes fintech innovation and investment unitStandard Chartered establishes fintech inn...
7662 views comments | 14 tweets | 14 linkedin
hands typing furiouslyFintech Adoption is About People, Not Tech
6787 views 1 | 6 tweets | 2 linkedin

Featured job

Competitive base + commission
New York City, NY - USA

Find your next job