Archive: April 17, 2018

1
6 ways for FinTechs to build trust: a regulator’s view
2
Beneficial Owner New Account Rules: What FinTech AML Program Managers and Their Financial Institutions Need to Know
3
Bank of England Blockchain Settlement Project

6 ways for FinTechs to build trust: a regulator’s view

By Michelle Chasser and Jim Bulling

In a recent speech on building trust, Australian Securities and Investments Commission Chair, James Shipton, identified 6 key characteristics that financial service providers, including FinTech companies, should have to ensure that the Australian financial system is efficient, resilient and fair.  Those characteristics are:

  1. Financial products that the FinTech company provides do what they say they will and don’t take advantage of consumer biases or lack of knowledge about the product.
  2. Consumers’ interests are prioritised and put before the FinTech company’s.
  3. The FinTech company acts with integrity and fairness, not just in compliance with the law but also taking into account community expectations and standards.
  4. Mistakes and misconduct are quickly identified, reported and rectified.
  5. Open engagement and cooperation with regulators not only about problems but also in relation to business challenges and risks.
  6. Being innovative and using technology to improve products and services to deliver better outcomes for consumers. Although by their very nature FinTech companies are innovative and use technology, an effort should be made to constantly improve outcomes for consumers and not adopt a ‘set and forget’ mindset.

How many of these characteristics do you demonstrate?

Beneficial Owner New Account Rules: What FinTech AML Program Managers and Their Financial Institutions Need to Know

By Dan Cohen and  John ReVeal

FinCEN’s new beneficial owner rules take effect May 11, impacting banks and the program managers and similar companies that help banks comply with the Bank Secrecy Act, including FinTech companies that provide AML on-boarding and monitoring services.  Under the new rules, banks and other covered financial institutions will be required to identify and verify the identity of the beneficial owners of their legal entity customers.  These rules will add to your regulatory burdens, particularly over the next several weeks.

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Bank of England Blockchain Settlement Project

By Jonathan Lawrence

The Bank of England, the UK’s central bank, is undertaking a Proof of Concept (PoC) to understand how a renewed Real Time Gross Settlement (RTGS) service could be capable of supporting settlement in systems operating on innovative payment technologies, such as those built on Distributed Ledger Technology (DLT). It is hoped that the service will deliver a stronger, more resilient, flexible and innovative sterling settlement system for the United Kingdom to respond to the changing payments landscape. The RTGS blueprint, published in May 2017, stated that the renewed service will offer a diverse and flexible range of settlement models, to enable existing and emerging payment infrastructures to access central bank money.

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