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2019年09月07日 category : College Essay Writing Services 

Consultation paper on draft innovation plan for financial services

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Background

The federal government announced in its Productivity Plan 2015 that departments will soon be required to make use of regulators to publish innovation plans by spring 2016. This announcement reflects the key government make an effort to ensure the UK is supporting the development of start up business models and disruptive technologies, wearing down barriers to entry and boosting productivity. To achieve this the UK’s regulation and enforcement frameworks must certanly be agile adequate to respond flexibly to continuing developments in new technologies and business that is disruptive.

The purpose of this consultation is always to essay writers set out ongoing and proposed work to foster a supportive regulatory framework for financial services which allows innovation to flourish.

The innovation plan covers the task for the financial services regulators: Financial Conduct Authority (FCA ), Payment Systems Regulator (PSR ), Prudential Regulation Authority (PRA ) while the wider Bank of England.

The innovation plan covers three issues that are key

  • How technology that is new shaping financial services
  • How financial services regulators are adapting to new technologies and business that is disruptive to encourage growth
  • How services that are financial are better utilising new technologies to generate efficiency savings and lower burdens on business

This consultation invites comment on the job of financial services regulators to aid innovative technology and disruptive business models. We might also prefer to understand where there could be gaps in regulatory approach when it comes to supporting innovation.

Draft innovation plan for financial services

2.1 Innovation and regulation

The government’s vision is for UK financial services to function as most acceptable and innovative in the world, delivering greater choice and value for consumers.

The government has already taken significant action to reach this vision. This includes:

Creating the proper environment that is regulatory particularly important to make sure innovative firms can compete and grow. To the end, HM Treasury has firmly embedded competition and innovation objectives within the landscape that is regulatory financial services through the main regulators’ objectives and remits.

2.2 How technology that is new shaping financial services

A vital focus of innovation in financial services in recent years may be the growth of fintech – technology solutions which deliver financial services, often in a more efficient and customer-focused way. For instance, technology has enabled:

  • consumers to make payments via their smartphones
  • the matching of consumers and businesses with money to save and invest with people who want to borrow
  • personal insurance pricing based on the characteristics and behaviours of individual consumers
  • the introduction of new digital currencies

The financial services sector is characterised by both new disruptive players and fintechs using the services of incumbents to produce more innovative services and products through existing networks and infrastructure.

The fintech sector is diverse: from small dynamic start-ups to more established players. Fintechs operate in a lot of areas of financial services – for example, payments, peer-to-peer lending, big data analytics and robo-advice – while the potential for technology to change financial services is substantial. 25% of all fintechs globally are in the retail payments industry 1 )

Great britain may be the world-leader in fintech. An report that is independent Ernst and Young (EY) published in February ranked the UK whilst the leading fintech centre on the planet – ahead of other leading hubs like Silicon Valley, New York and Hong Kong.

The UK’s fintech sector has been growing rap >2 .

2.3 How financial services regulators are adapting to new technologies and disruptive business models to encourage growth

This section outlines how each financial services regulator intends to support and promote innovation, facilitating the introduction of new technologies and disruptive business models in financial services.

The government’s priority would be to make certain that regulation is proportionate and promotes innovation, instead of constrains or inhibits it. Indeed you can find probably be some areas of existing regulation, developed long before digital and technological advances, which might now be acting as a barrier to innovation.

2.4 Financial Conduct Authority (FCA )

Project Innovate

It helps innovative firms gain access to fast and frank feedback on the regulatory implications of their concepts, plans and choices. In addition it seeks to tackle the issues that are structural impede the progress of innovators entering the market.

Part of Project Innovate is the Innovation Hub that will help new and established businesses (both regulated and non-regulated) introduce innovative financial loans and services to the market. The Innovation Hub also identifies places where the regulatory framework needs to conform to enable further innovation in the interests of consumers.

Up to now, Project Innovate has helped over 250 firms, 18 of which have been authorised to undertake regulated activities. It offers an end-to-end experience for new entrants. Firms that receive initial support through the Innovation Hub have their applications for authorisation handled via a specialised Project Innovate authorisation process.

  • using the services of government on its plans to introduce anti-money laundering regulation for digital currency exchanges, to present a environment that is supportive legitimate digital currency users and businesses, and create a hostile environment for illicit users
  • making a statement taking a look at the extent regarding the issue of disproportionate de-risking, which denies businesses access to banking facilities, and how the FCA might influence firms to take a more proportionate approach
  • using informal steers on proposed innovations to allow more communication that is direct firms

Great britain attracts fintech innovators from around the entire world – many decide to base themselves in the UK, not only to engage in a captivating local ecosystem, but additionally since they start to see the UK as a springboard to launch their businesses or products internationally and bolster their competitiveness.

The FCA as part of this work

  • Helps put UK-based innovators in contact with the right regulators once they aim to start doing business in other regulatory jurisdictions
  • Stand prepared to help innovators that are non-UK in going into the UK market
  • Seeks co-operation agreements with key regulators. For instance, the FCA recently signed a world-first Co-operation Agreement using the Australian regulator, ASIC, to facilitate the referral of innovative firms between their respective innovation hubs
  • Promotes pro-innovation regulatory solutions to international standard-setters

Other initiatives to guide innovation and competition

The guidance is designed to dispel misconceptions about regulators’ opposition to the encourage and cloud innovation in this area.

It is designed to encourage greater utilization of technology and behavioural insights to deliver communications which help people make effective decisions about services and products. The FCA is dedicated to working with industry where a notion has strong potential to boost consumer outcomes; the FCA may consider waiving or disclosure that is modifying where appropriate to facilitate this testing.

Additionally, it is taking a look at amending its Handbook to remove an amount of disclosure requirements that have not been as effectual as initially envisaged with regards to providing appropriate information to consumers.

2.5 Payment Systems Regulator (PSR )

Access to payment systems is an important driver of competition and innovation within the provision of payment services. Limited access has long been considered a barrier to entry for brand new banks, e-money issuers and other payments institutions, with the concern that the pace of innovation in this certain area is too slow.

A main objective is be effective proactively with small payments institutions and fintech firms to identify where in actuality the barriers to innovation exist, which feeds to the PSR ’s policy development and implementation.

Competitive innovation

This consists of publishing reports that are annual assess each scheme’s compliance, which include areas where the PSR expects to see improvements. The PSR will consider further regulatory action if improvements are not made.

To ensure the marketplace is operating in a fashion that supports competitive innovation, the PSR is conducting two market reviews:

The interim findings for both reviews were published in February and March prior to the final reports later this present year. Based on its findings, the PSR may implement remedies or undertake further policy work to support competitive innovation.

Collaborative innovation

Following engagement aided by the wider payments community, the Forum developed its set that is initial of areas. This consists of:

  • Greater control and assurance for end users
  • Simplifying access to marketplace for payment services providers
  • An assessment of how industry can perhaps work to detect and minimize crime that is financial
  • An evaluation associated with the costs and advantages of account number portability

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