Tag: compliance

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ASX releases Compliance Update for listed entities on cryptocurrency-related activities
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FCA outlines FinTech and RegTech priorities for year ahead
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The post-election fintech world: are happy days (for bankers) here again?
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Regtech Earns a Name
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EU Oversight on payments

ASX releases Compliance Update for listed entities on cryptocurrency-related activities

By Jim Bulling and Rebecca Gill

On 1 August 2019, the Australian Securities Exchange (ASX) published its Compliance Update (Update) which sets out its guidance for listed entities that are proposing to engage in cryptocurrency-related activities, being initial coin offerings (ICOs) and initial exchange offerings (IEOs).

The Update notes that many tokens offered to investors in Australia as part of an ICO or an IEO may be regulated by the Corporations Act 2001 (Cth) as the tokens may constitute interests in managed investment schemes. As such, listed entities should seek legal advice prior to engaging in cryptocurrency-related activities.

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FCA outlines FinTech and RegTech priorities for year ahead

By Jonathan Lawrence

The UK Financial Conduct Authority (FCA) recently issued its Business Plan 2017/18 that deals with its FinTech and RegTech priorities for the year ahead. The FCA wants to engage more with regional and Scottish FinTech hubs. In its risk outlook, the FCA talks about more complex value chains that utilise FinTech posing a risk to consumer protection and market integrity. The issues associated with the oversight and controls of increasingly complex chains of third party relationships are reflected in the FCA’s priorities. The technological resilience of incumbent firms will also continue to be an area of focus because of the risk of disruption to financial markets. The FCA states that FinTech firms may not fully understand the scope of regulation and its impact on their business model. This could lead to cases of non-compliance with FCA rules, which could pose risks to consumer protection and market integrity. In addition, the FCA fears that greater reliance on technology poses increased operational risk, and risks to market integrity. The FCA believes that FinTech business models shift risk from financial firms to consumers without consumers fully understanding the implications or having adequate safeguards.

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The post-election fintech world: are happy days (for bankers) here again?

By Judith Rinearson and Eric Love

In the days following the U.S. federal elections that resulted in the election of Donald Trump as President and Republican control of the 115th Congress, FinTech companies, banks, and other financial institutions are increasingly asking whether they still need to worry about compliance with the landmark Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), Consumer Financial Protection Bureau (“CFPB”) regulatory actions, and other financial services regulations.

It is true that there will likely be some significant regulatory changes, but it is a little too early for industry participants to pop the champagne corks.

To see are our thoughts about some of the top issues impacting FinTech companies, banks and other financial institutions, click here.

Regtech Earns a Name

By Susan Altman

Technology solutions for bank regulatory requirements have been around for decades, but their soaring popularity has led to them earning their own nickname within the fintech world: they’re now “regtech” solutions, according to a new report issued by Bain & Co. in the American Banker.  Regtech products are designed to benefit banks’ efforts to comply with growing regulatory burdens and improve internal governance controls.  Bain estimates that governance, risk and compliance costs account for 15% to 20% of the total “run the bank” cost base of most major banks.  It’s no small wonder that banks are struggling to devise a robust and efficient approach to compliance and are outsourcing the implementation and hosting of advanced compliance tools with nimble regtech-focused outside vendors.  Bain has identified more than 80 emerging regtechs that extract and structure data, integrate data from banks’ proprietary systems, third-party data providers and public sources, and crunch the data in automated, scalable ways.  Artificial intelligence, or machine learning, continuously improves the quality, precision and reliability of the insights that emerge.

Bain predicts that banks’ relationships with regtechs will be significantly shaped by regulators, in the form of governance, risk and compliance standards and approval of proposed solutions. As new requirements go into effect, banks will need to continuously assess the level of functionality, complexity and efficiency of current technology, systems and data.  And did we mention, this all has to be done in a very secure environment?

EU Oversight on payments

By Jacob Ghanty

The second EU Payment Services Directive is set to change the banking landscape in Europe.  In the linked article, Jacob Ghanty describes some of the changes that PSD2 will bring about.  This article was first published in inCOMPLIANCE, member publication of the International Compliance Association www.int-comp.org.

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