This edition of Bite-size Briefings explores the regulation of crypto (or digital) assets across a number of jurisdictions: Australia, Brazil, Hong Kong SAR, Singapore, the UK and the US.
Episode 26: UK Fintech Week 2022: State of the Fintech Nation
In this episode of FInsight, London partners Sue McLean, Mark Simpson, and David Hart talk about UK Fintech Week 2022. They cover the biggest trends and developments around fintech in the UK, with special focus on the expected topics throughout the event. The episode takes a closer look at the investment landscape (including the UK’s position as a fintech hub, active investors and top sub-sectors) and the current and expected regulatory developments that fintech players need to watch out for.
The Financial Services Regulatory (FSR) Momentum Monitor is a horizon-scanning tool enabling financial service providers to plan and prepare for coming developments across the jurisdictions in which they operate. Grouping upcoming changes into key business-relevant themes, the FSR Momentum Monitor highlights the extent and expected impact of upcoming regulatory intervention in multiple jurisdictions across the globe.
On 18 January 2022, HM Treasury confirmed that it will bring certain cryptoassets into the scope of the financial promotion regime. The Treasury’s view is that the evidence of risks to consumers provides a strong case for intervention, and as such it intends to expand the scope of the Financial Promotions Order to include cryptoassets. The Treasury’s announcement was followed the next day by the launch of an FCA consultation on strengthening the financial promotion rules for high-risk investments, including cryptoassets.
We are delighted to have joined this ground-breaking initiative supporting The Payments Association and other private industry stakeholders in the creation of the Green Paper report examining the potential for Central Bank Digital Currencies, ‘A New Era for Money’. The paper advocates for closer public-private collaboration to advance exploration of a digital currency in the UK, before a real-world pilot of ‘digital pound’ (dSterling).
Regulators and policymakers have left emergency measures behind and returned to their reform agendas. In this piece, Baker McKenzie regulatory experts set out the top ten UK developments for financial institutions and fintechs to watch in 2022 covering: good culture, Consumer Duty, BNPL regulation, crypto regulation, AML regulation, appointed representatives regime, financial promotions gateway, operational resilience, ESG regulation, divergence, Future Regulatory Framework Review.
The FCA has published a consultation (CP21/34) proposing changes to the Appointed Representatives (AR) regime. In parallel, HM Treasury (HMT) has published a Call for Evidence on possible legislative reforms to the AR regime. These papers present significant, wide-ranging changes that have the potential to seriously impact the way that AR arrangements operate, and the burdens placed on principals in particular.
On 7 December 2021, the FCA published its second consultation on the Consumer Duty, setting out more developed proposals for rules and guidance following feedback from its first consultation. The proposals set out in the first consultation have been mostly carried forward, though the FCA has made some important amendments and clarifications in response to feedback received. For more detail on the first consultation, including background to the introduction of a Consumer Duty.
The recent increase in value of cryptoassets as an investment class along with media coverage associated with high profile large investors has resulted in regulators warning investors to be cautious of the associated volatility risk. Against the background of these recent developments, we’re seeing increasing demand for legal advice in this area.
On 21 October 2021, HM Treasury published its much-anticipated consultation on the regulation of buy-now-pay-later products. The consultation arrives nearly seven months after the Treasury confirmed that it would formally consult on bringing BNPL products into the regulatory perimeter “as a matter of priority”.