FCA reports on regulatory barriers to innovation in digital and mobile solutions

The FCA today published FS16/2: Feedback Statement on Call for Input: Regulatory barriers to innovation in digital and mobile solutions, in which it summarises the feedback it has received, sets out its response and explains the next steps in the context of the wider Project Innovate agenda.

The FCA has issued this statement since it in June 2015 published its Call for Input: Regulatory barriers to innovation in digital and mobile solutions, where the regulator had noted that:

  • digital and mobile solutions can be more convenient for many consumers and offer efficiency and cost benefits to providers. As a result, digital technology is becoming integrated in all sectors of the economy.
  • applying digital solutions has become a top priority in the public sector in the UK and in the EU
  • we would like to understand better the strategic regulatory barriers and enablers, either in the UK or at EU level, that prevent development of digital and mobile solutions.

According to the FCA, the Call for Input was positively received since the majority of respondents recognised that this work was part of the FCA’s longer-term commitment to foster innovation and welcomed its engagement on these issues.

It was clear from the responses to the Call for Input that, while many innovative digital and mobile solutions already exist with stakeholders eager to use them and provide them to consumers, there are a number of perceived barriers that are preventing greater use of all the available technology.

With regard to the next steps, the FCA will:

  • address the issues raised around communications through a Feedback Statement to our Discussion Paper (DP) on smarter consumer communications (DP15/5)
  • continue to engage with Her Majesty’s Treasury and the Joint Money Laundering Steering Group (JMLSG) to help them implement the Fourth Money Laundering Directive (MLD4) in a way that maximises its potential for digital solutions
  • seek views of stakeholders on the implementation of Payments Services Directive II (PSD2) through industry engagement and a consultation on our current PSD Approach Document
  • host an event on payments in spring 2016 to further engage with stakeholders on key issues
  • explore the issues raised in the financial advice market through the Financial Advice Market Review (FAMR)
  • address the issues raised on the use of third-party cloud providers through our guidance consultation

The FCA statement and related information can be found here.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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