Overview of FinTech regulations – with May 21, 2021

By on May 26, 2021 0

In this regular update, we summarize the regulatory developments related to FinTech for the week ending May 21, 2021.


BIS Discussion Paper on Digitization of Currency

The Bank for International Settlements (BIS) has published a working paper that examines the digitization of currency. The paper discusses key issues and economic implications of digital currencies, including how digital currencies could decouple traditional currency roles, lead to digital currency zones that span multiple countries, and shift payments from granting. from banks to digital platforms.

BIS working papers are written by members of the Monetary and Economic Department of the BIS and, from time to time, by other economists. The articles focus on topical issues and are of a technical nature. The opinions expressed herein are those of their authors and not necessarily those of the BIS.




PRA: Business Plan 2021/22

The PRA has published his Business plan 2021/22. The business plan defines the strategy, work plan and budget of the PRA for the period from March 1, 2021 to February 28, 2022. It also details the actions of the PRA to mitigate the impact of Covid-19 on business and the UK economy.

The strategic objectives of the PRA for 2021/22 concern:

  • strong prudential standards and supervision;
  • adaptation to market developments and horizon analysis;
  • financial resilience;
  • operational resilience;
  • recovery and resolution;
  • competition;
  • Withdrawal from the EU; and
  • efficiency and effectiveness. [24 May 2021]


PSR: Call for views on the second phase of the beneficiary confirmation service

The payment systems regulator (PSR) has published a call for views in the second phase of Payee Confirmation (CoP) delivery, a name verification service designed to prevent authorized push payment (APP) scams and misdirected payments. The second phase aims to allow further participation in the service by allowing all banks and construction companies to offer CoPs. The call for views explores the requirements to ensure that the service is technically capable of operating on all wire transfers, and whether it should ask other banks, real estate companies and financial institutions to implement the service by the end of 2021.

Comments are requested by June 30, 2021. [21 May 2021]



FCA: time extension for SCA

FCA has published a statement extending the deadline for implementing Strong Customer Authentication (SCA) for e-commerce transactions to March 14, 2022. The FCA recognizes the challenges the industry faces in being ready for the The previous deadline and the extension aims to ensure minimal disruption to traders and consumers. [20 May 2021]



FCA: “ Dear CEO ” letter on the protection offered by electronic money companies

FCA has published a model version of his letter “Dear CEO” on the protection offered by electronic money companies to customers. The letter sets out FCA’s concerns about the lack of disclosure that e-money companies offer customers regarding the differences between their services and traditional banks, in particular the fact that the Financial Services Clearing System (FSCS ) Not Applicable. The letter calls on e-money businesses to make sure customers understand how their money is protected and outlines the actions businesses should take. [18 May 2021]

FCA: speech on the rise of scams

FCA has published a speech by Mark Steward, executive director of law enforcement and market surveillance, on the rise of scams and the corresponding threat to the financial services industry. Mr. Steward spoke about the FCA’s role in preventing harm to consumers from unauthorized activity and the improvements it has made to tackle scams as they occur. These include:

  • increased proactive monitoring and daily updates of the FCA warning list;
  • fight against investment fraud in FCA perimeters; and
  • collaborate with social media companies on the application of section 21 of the Financial Services and Markets Act 2000 (FSMA).

Mr. Steward also noted that companies should do more to prevent harm and that failure to do so could lead the FCA to take action. [18 May 2021]



FCA: Update of the Outsourcing and Operational Resilience webpage regarding the application of the EBA Outsourcing Guidelines

FCA has update its Operational Resilience and Outsourcing webpage with information on the application of the European Banking Authority (EBA) Outsourcing Guidelines in the context of the Operational Resilience Policy Package recently finalized by the UK authorities . [17 May 2021]



ECB: speech on the future of retail payments in the EU

The ECB has published a speech on the future of retail payments in the EU, delivered by Fabio Panetta, member of the Executive Board of the ECB. Among others, Mr. Panetta mentioned:

  • the digitization of the EU’s retail payments landscape;
  • the need to increase choice, resilience and competitiveness by stimulating competition and developing innovative payment solutions and technologies;
  • the need for a full deployment of instant payments; and
  • the need for cheap, easy and fast access to cross-border payments. [19 May 2021]




ASIC consults regarding ePayments code updates

ASIC has published a consultation document (CP 341), soliciting feedback on proposed updates to the ePayments code. The Code protects consumers with respect to electronic payments, including ATMs, EFTPOS, credit and debit card transactions, internet and mobile banking, and online payments.

The purpose of these updates is to ensure the continued effectiveness and relevance of the Code. To this end, the updates offered by ASIC mainly relate to compliance monitoring and data reporting, erroneous internet payments, small business protection, unauthorized transactions and complaint handling.

The review also examines options for modernizing the Code, to reflect changes in the area of ​​electronic payments since the last revision of the Code.

CP 341 is designed to help ASIC formulate its final positions on Code updates.

ASIC is requesting submissions by Friday July 2, 2021. [21 May 2021]

#Electronic payments

Hong Kong

HKMA asks AIs to critically assess the need for secure backup of tertiary data

The HKMA has published a circular ask Authorized Institutions (IAs) to critically assess the need for secure tertiary data backup to counter the risk of destructive cyber attacks.

HKMA considers destructive malware (including ransomware) of growing concern as it can potentially lead to permanent loss, corruption or unauthorized alternation of critical data. He therefore invited the Association of Banks of Hong Kong (HKAB) to develop guidelines adapted to the banking landscape of Hong Kong. On April 30, 2021, the HKAB released the Tertiary Data Secure Backup Directive, which provides guidance to banks on the factors they should consider when deciding whether to set up a secure tertiary data backup and the issues of implementation. implementation that they must resolve to ensure its effectiveness. The guideline includes 8 high-level principles grouped under governance, design and data recovery.

The HKMA considers secure backup of tertiary data to be an effective measure to improve cyber resilience and data security and expects all AIs to critically assess the need for such backup based on HKAB guidelines.

All retail banks and branches of foreign banks with significant operations in Hong Kong are required to submit a report to the HKMA by November 30, 2021, outlining the outcome of their assessment. The HKMA will inform IAs individually whether they are required to submit such a report and what information to include in the report. [18 May 2021]


# Data security