European Parliament report on Fintech: the influence of technology on the future of the financial sector
The European Parliament just adopted an own-initiative report on Fintech entitled “Fintech: the influence of technology on the future of the financial sector”, 17th May 2017 .
The Parliament work on Fintech will feed the current discussions in the European Commission, including the on-going consultation on Fintech (deadline: 15 June 2017).
The report stressed that legislation and supervision in the area of Fintech should be based on three principles:
- “Same services, same risks”: the same rules should apply, regardless of the type of legal entity concerned or its location in the EU;
- Technology neutrality;
- Risk-based approach taking into account the proportionality of legislative and supervisory actions to risks and materiality of risks.
Other key messages:
- Fintech should contribute positively to the development of financial intermediation (but also create new risks).
- The EC and the ESAs should avoid overlaps of regulation as well as the creation of new barriers to entry on the market and apply, when possible, pass porting regimes to providers of new financial services.
- Blockchain and DLT : potential applications for cash and securities transfers, smart contracts…
- Issues to take into accounts: cybersecurity, Data, interoperability, financial stability and consumer protection, financial education and IT skills.
Click here to read the report.