FinTech Global Regulatory Round-up – w/e 25 February 2022

DfIT: UK and Singapore sign new innovative digital trade deal

The Department for International Trade (DfIT) has announced that UK and Singapore signed a new innovative digital trade deal. The deal refers to, among other things, strengthening the UK and Singapore’s relationship for financial services by ensuring data can flow freely without unjustified barriers and enhanced cooperation for innovative financial services. [25 Feb 2022]

Judiciary speech on Lawtech report

The Judiciary has published a speech by the Master of the Rolls, Sir Geoffrey Vos, at the launch of LawtechUK’s Smarter Contracts report. In his speech, Sir Geoffrey noted that the report aims to explain how smarter contracts and blockchain technology are being used today; it focuses on 'the practical rather than the theoretical'. In his preface to the report, Sir Geoffrey writes that a further a major report and draft Bill on digital assets, non-fungible tokens and cryptocurrencies is expected from the Law Commission at the end of 2022. [25 Feb 2022]

#DigitalAssets

#NFTs

#Cryptocurrencies

ECB: Speech on central bank digital currencies

The European Central Bank (ECB) has published a speech by Fabio Panetta, Member of the Executive Board of the ECB, on central bank digital currencies (CBDCs) at the US Monetary Policy Forum. In his speech, Mr Panetta argues that, in a digital world, CBDCs are necessary to preserve the role of central bank money as a stabilising force at the heart of the payments system and to safeguard monetary sovereignty. However, Mr Panetta also notes that CBDCs will need to be carefully designed and will need to add value for users; support competition rather than crowd out private innovation; and avoid risks to financial intermediation. Mr Panetta refers to the launch of the two-year investigation phase in October 2021 and that the ECB could decide to start the realisation phase, expected to take three years, at the end of 2023. The ECB would only consider whether or not to issue a digital euro after the end of the realisation phase. [21 Feb 2022]

Outgoing ACCC Chair identifies areas for focus in financial services

Outgoing Chair of the Australian Competition and Consumer Commission (ACCC), Rod Sims, addressed the National Press Club in Canberra reflecting on his time at the ACCC and challenges for the future. Among those challenges, Mr Sims noted the increasing role of digital platforms in a now largely cashless economy. [23 Feb 2022]

FSTB announces new round of Financial Practitioners Fintech Training Programme

The Financial Services and the Treasury Bureau (FSTB) has announced that a new round of the Financial Practitioners Fintech Training Programme is open for application from 24 February 2022.

The training programme aims to provide financial practitioners from different sectors with a fintech training course and tuition subsidies to enhance their knowledge of the practical application of fintech, and in turn accelerate the digital transformation of the financial services sector. Unlike the previous round, the new round of the training programme will benefit both practitioners of financial institutions and members of trade associations in securities and insurance sectors.

The training programme comprises of two parts:

• Webinar Series – This provides training on a wide range of topics, such as regtech, blockchain, artificial intelligence, cybersecurity and environmental, social and governance.  The FSTB will offer a full subsidy to applicants who have successfully completed the courses.

• Incentive Scheme – The scheme is designed for the securities and insurance sectors.  Trade associations can organise tailor-made fintech training programmes for their members on specific fintech topics, and the proposed training programmes will be assessed by a vetting team comprising representatives from the government, the financial services sector and the academia.  The FSTB will offer a one-off direct subsidy (up to a maximum of HK$100,000) to each approved training programme.  [24 Feb 2022]

#Training

Financial Secretary announces proposals for development of Hong Kong as international financial centre in 2022-23 budget speech

In his 2022-23 Budget Speech, Hong Kong's financial secretary, Mr Paul Chan, set out his proposals for the development of Hong Kong as an international financial centre. The key proposals in relation to fintech are:

• The HKMA and the People's Bank of China are implementing the operation details of a one-stop platform in the form of a network link-up to allow eligible financial institutions and technology firms to conduct pilot trials of cross-boundary fintech projects.

• Greater Bay Area (GBA) investment fund – The government will increase the funding allocated to the Hong Kong Growth Portfolio under the Future Fund by HK$10 billion (HK$5 billion to set up the Strategic Tech Fund and HK$5 billion to set up the GBA Investment Fund). [23 Feb 2022]

SFC publishes quarterly report for October to December 2021

The SFC has published its quarterly report summarising its work and key developments from October to December 2021.  The highlights covered by the report include the following fintech-related items (among others):

• Regulatory enhancements, such as issuing a joint circular with the HKMA on intermediaries' virtual asset activities; and
• Intermediary-related initiatives, such as issuing an operational resilience circular to set out regulatory standards for preventing and responding to disruptions and managing the risks of remote working, and launching WINGS, a fully digitalised licensing platform to provide one-stop, comprehensive licensing service to users. [23 Feb 2022]

#OpRes

#SupTech

Insurance Authority publishes annual report 2020-21

The Insurance Authority (IA) has published its annual report 2020-21, providing an overview of its work and activities that took place from April 2020 to March 2021.

With particular regard to fintech, the IA report included, for example:

• authorising two virtual insurers under Fast Track;
• reviewing details of anti-money laundering and counter-terrorist financing controls for virtual onboarding trials under the Insurtech Sandbox; and
• discussing with Future Task Force members on how to turn Covid-19 challenges into opportunities via technology and build a positive industry image through good conduct and ethical practices.  [23 Feb 2022]

#InsurTech

#Sandbox