In this regular update, we round-up FinTech-related financial services regulatory developments for the week ending 26 August 2022.
ICYMI
Recent updates from Herbert Smith Freehills include:
- High Court gamble does not pay out for computer-implemented inventions in Australia
- The Law Commission digital assets consultation – a proposal for property rights reform
- The Financial Services and Markets Bill – a new vision for future UK financial services
Global
FSI: Brief on safeguarding operational resilienceThe Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) has published a brief on safeguarding operational resilience. The brief looks at operational resilience through a macroprudential lens and considers the following: the progress in developing frameworks for operational resilience; the main guidelines that have been issued; the macroprudential concerns in relation to operational resilience; and solutions on how to address such concerns. [25 Aug 2022] |
#OpRes |
UK
FCA publishes ToR for Open Banking working groupThe FCA has published the terms of reference (ToR) for the Strategic Working Group (SWG) which will collate views and input from industry and broader stakeholders with regard to the further development of Open Banking. The SWG will run from August to December 2022, and will report by the end of 2022. [26 Aug 2022] |
#OpenBanking |
Insolvency Service: Suspected crypto scam firms wound up by High CourtThe Insolvency Service has reported that the High Court has wound up two companies which were suspected to be involved in a cryptocurrency scam. One of the companies had also received a £50,000 Bounce Back Loan (BBL), though the Insolvency Service notes there is no evidence it was eligible to receive such support. [26 Aug 2022] |
#Cryptocurrecies |
FCA: Regulation round-up - August 2022The FCA has published the August 2022 edition of its Regulation Round-up. This issue notes that the FCA's rules on risk warnings for financial promotions of high-risk investments will come into effect from 1 December 2022, and that that the final rules on crypto promotions will be published once legislation confirms how crypto marketing will be brought into the FCA's remit. Other hot topics covered in this month's round-up include improving the appointed representatives regime and the buy now pay later (BNPL) 'Dear CEO' letters. [25 Aug 2022] |
#Crypto
#Marketing |
FCA: DEI Innovation Spotlight - new webpageThe FCA has published a new webpage on its Diversity, Equity and Inclusion (DEI) Innovation Spotlight Initiative. The initiative aims to encourage firms that are developing innovative products in the DEI space to work with the FCA's Innovation services. The webpage sets out the types of firms that should apply; how to apply; and other details. The spotlight will be an ongoing initiative. [24 Aug 2022] |
#Innovation
#DEI |
FCA: Innovation Hub - market insights webpageThe FCA has published a new webpage with market insights from its Innovation Hub. The new webpage shows the FCA's most up to date data on the firms supported by its Regulatory Sandbox and Innovation Pathways service including sectors, technologies, areas of innovation and locations. [23 Aug 2022] |
#Innovation
#Markets |
EU
ECB: Policy presentation on CBDCsThe European Central Bank (ECB) has published a presentation delivered by Fabio Panetta, Member of the Executive Board, at the Annual Congress of the European Economic Association in Milan, Italy. The presentation sets out policy views in relation to central bank digital currencies (CBDCs), focusing on the reasons which support the issuance of a digital euro and the challenges in doing so. [24 Aug 2022] |
#CBDCs |
Australia
ASIC releases strategic priorities for the next four yearsASIC has released its Corporate Plan which sets out its strategic priorities and plan of action over the 2022 to 2026 period. It outlines four key external strategic priorities: product design and distribution; sustainable finance; retirement decision making; and technology risks. The plan also highlights four internal priorities which involve improving digital technologies, data and analytics, people and resourcing and modernising business registers. Supporting these plans are eight core strategic projects focused on a range of enforcement actions to protect consumers and investors. ASIC Chair Joe Longo explained that the plan’s purpose is to enable ASIC to “address a number of emerging trends and important law reforms that are reshaping the financial system including digitally enabled misconduct, emerging technologies, climate risks and an ageing population”. Mr Longo foreshadowed, also, that “ASIC will take strong and targeted enforcement action to protect consumers and investors and to maintain trust and integrity in the financial system” and that ASIC was looking to the longer term for that purpose. In a subsequent speech given to the Committee for Economic Development of Australia (CEDA), Mr Longo surveyed the regulatory and economic landscape and expanded upon the four priorities outlined in ASIC’s Corporate Plan by outlining ASIC’s approach on four of the eight associated strategic projects. Broadly, these projects addressed sustainable finance, supervision and enforcement of design and distribution obligations, market integrity in relation to crypto-assets and financial scams. [22 Aug 2022] |
#Digital
#Technology #Cryptoassets
|
Government to commence work on crypto asset regulatory frameworkThe Government has announced plans to undertake a "token mapping" exercise in 2022 as a precursor to developing regulatory framework for crypto assets. The release explains that, "The aim will be to identify notable gaps in the regulatory framework, progress work on a licensing framework, review innovative organisational structures, look at custody obligations for third party custodians of crypto assets and provide additional consumer safeguards." A consultation on the token mapping exercise is to be released shortly. [22 Aug 2022] |
#Cryptoassets |
Hong Kong
Secretary for Financial Services and the Treasury publishes blog post on government's initiatives to support Fintech developmentThe Secretary for Financial Services and the Treasury, Mr Christopher Hui, has published a blog post to set out the details of two new initiatives launched by the Financial Services and the Treasury Bureau (FSTB) to support financial technology (Fintech) development, the first being a new round of the Fintech Proof-of-Concept Subsidy Scheme with proposed enhancements in three areas:
Secondly, the FSTB, the HKMA and the Hong Kong Institute of Bankers will launch a Pilot Scheme on Training Subsidy for Fintech Practitioners. Banking practitioners who have attained fintech professional qualifications under the Enhanced Competency Framework can receive reimbursement of 80% of the tuition fees subject to a ceiling of HK$25,000, with around 1,500 places to be offered. The two schemes will be launched in September 2022. The Cyberport and the HKIB will later announce the application details through their websites. [17 Aug 2022] |
#FinTech |
Secretary for Financial Services and the Treasury publishes blog post on government's initiatives to support Fintech developmentThe Secretary for Financial Services and the Treasury, Mr Christopher Hui, has published a blog post to set out the details of two new initiatives launched by the Financial Services and the Treasury Bureau (FSTB) to support financial technology (Fintech) development, the first being a new round of the Fintech Proof-of-Concept Subsidy Scheme with proposed enhancements in three areas:
Secondly, the FSTB, the HKMA and the Hong Kong Institute of Bankers will launch a Pilot Scheme on Training Subsidy for Fintech Practitioners. Banking practitioners who have attained fintech professional qualifications under the Enhanced Competency Framework can receive reimbursement of 80% of the tuition fees subject to a ceiling of HK$25,000, with around 1,500 places to be offered. The two schemes will be launched in September 2022. The Cyberport and the HKIB will later announce the application details through their websites. [17 Aug 2022] |
#Innovation
#FinTech |
US
FDIC issues cease and desist letters to five companies for making crypto-related false or misleading representations about deposit insuranceThe Federal Deposit Insurance Corporation (FDIC) has issued letters asking five companies and their officers, directors, and employees to cease and desist from making false and misleading statements about FDIC deposit insurance and to take immediate corrective action to address these false or misleading statements. Based upon evidence collected by the FDIC, each of these companies made false representations – including on their websites and social media accounts—stating or suggesting that certain crypto-related products are FDIC-insured or that stocks held in brokerage accounts are FDIC-insured. [19 Aug 2022] |
#Crypto |
Ukraine-related sanctions information
Regular updates on sanctions and other developments that may impact businesses with interests or operations in Ukraine and/or Russia are available on our FSR and Corporate Crime Notes blog here.
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Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.