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European Financial Services Round Table
 





Friday, July 27, 2018
EFR paper on European Commission's FinTech Action Plan

The European Financial Services Round Table (EFR), comprised of Chairmen and Chief Executive Officers of international banks and insurers with headquarters in Europe, has published a paper reacting to the European Commission's Action Plan on FinTech.


The EFR welcomes the Action Plan, but is concerned that the European Commission's rather cautious approach might delay concrete measures that could speed up beneficial innovation in the European financial sector or prevent cyber risks and unlevel playing field issues.


Therefore, the EFR makes recommendations to reinforce or complement the initiatives of the Fintech Action Plan. Europe urgently needs a globally-aligned, cross-sectorial and forward-looking response to the digitalisation challenge, if the EU is to realise its aspiration of becoming a global hub for innovation in financial services. A regulatory framework is needed that enables firms to adopt innovations quickly yet safely, for the benefit of consumers and businesses.


In general, the EFR stresses that concerning every digital issue and proposed legislation/regulation certain most pressing topics need to be taken into account, such as:



  • assessing the potential cyber security risk of each proposal before coming up with legislation/regulation;

  • ensuring fair competition and fair choice, for which it is necessary that the regulatory framework must be able to adapt swiftly to emerging risks and should provide appropriate governance, transparency, data accessibility, interoperability and liability;

  • standardisation of regulatory sandboxes and supervision that should take place within an EU level framework;¬†innovation should fully comply with existing regulations.

  • having competition policy and law enforcement focusing on innovation barriers, technological lock-in or lock-out effects and considering the implications of multi-sided markets.