Fintech regulation - what to expect

With increasing regulation in the fintech space, we have created a timeline of key UK and EU regulatory milestones to expect over the coming months and years.

January 2018

• 13 Jan: PSD2 regime in force; broader range of services in scope, e.g., account aggregation services
• 13 Jan: Open Banking managed roll-out commences
• 17 Jan: Deadline for response to EU Art 29 Working Party Consultation Paper Working document on Adequacy Referential and the Working Documents on Binding Corporate Rules for Controllers and Binding Corporate Rules for Processors (GDPR)
• 19 Jan: Deadline for tenders on study on opportunity and feasibility of a EU blockchain infrastructure
• 23 Jan: Deadline for responses to EU Art 29 Working Party Consultation Paper Guidelines on Consent and Guidelines on Transparency (GDPR)
• 26 Jan: Deadline for responses to European Payments Council (EPC) Consultation Paper on Mobile Contactless SEPA Card Payments Implementation Interoperability Guidelines
• 31 Jan: Deadline for applications for Financial Conduct Authority (FCA) fourth sandbox cohort
• 31 Jan: Deadline for responses to HM Treasury (HMT) Consultation Paper on Corporate tax and the digital economy: position paper
• Jan: National Cyber Security Centre to publish generic cross-sector security guidance, including a cyber assessment framework, in relation to the Cybersecurity Directive
• Q1: FCA Model driven machine executable regulatory reporting – 4 roundtables, firm data exercise and business case preparation
• Q1: Expected entry into force of Amendment to FSMA clarifying definition of 'deposit taking' in the Registered Activities Order with regard to peer-to-peer lending
• Q1: EU Commission FinTech initiative expected
• Q1: EU Commission legislative proposal for an EU framework on crowd and peer-to-peer finance expected
• Q1: EU Commission legislative proposal on fairness in platform-to-business relations (Digital Single Market) expected
• Early 2018: EU Commission to adopt decision on data adequacy for Japan
• 2018: Interim report of the Organisation for Economic Cooperation and Development Task Force on the Digital Economy expected
• 2018: European Insurance and Occupational Pensions Authority thematic review on Big Data
• 2018: European Banking Authority (EBA) thematic report on impact of FinTech on incumbents' business models
• 2018: Eurosystem cyber resilience strategy for FMIs ongoing, including development of EU Red Team Testing Framework and establishing EU Cyber Resilience Board

February 2018

• 13 Feb: Deadline for responses to Department for Digital, Culture, Media & Sport (DCMS) Consultation Paper proposal on ENISA and cyber security certification
• 28 Feb: Deadline for responses to Information Commissioner's Office Consultation Paper on children and the GDPR guidance
• Feb: Government response to Consultation Paper on Legislation to support cheque imaging: consultation expected and legislation to be laid in Parliament

March 2018

• Mar: FCA Consultation Paper on approach to application of EBA Guidelines on operational and security risks under PSD2
• Mar: Final EPC Mobile Contactless SEPA Card Payments Implementation Interoperability Guidelines expected
• Mar: Bank of England (BoE) FinTech community meeting expected; news release to follow
• Mar: HMT Rent Recognition Challenge application phase closes
• Spring: EU Commission Digital Single Market initiative on accessibility and reuse of public and publicly funded data

Q2 2018

• H1: European Securities and Markets Authority A final report on MiFID II suitability requirements (including robo-advice) expected
• H1: HMT/Department for International Trade to host 2^nd International FinTech Conference
• 13 Apr: FCA deadline for existing authorised Payment and Electronic Money institutions to reapply for authorisation under PSD2
• Apr: Expected deadline for response to FCA Consultation Paper on approach to application of EBA Guidelines on operational and security risks under PSD2
• Apr: UK Legislation to support cheque imaging to apply
• 9 May: Deadline for member states required to transpose the Cybersecurity Directive (subject to adoption)
• 25 May: GDPR comes into force
• 25 May: New EU Data Protection Board assumes functions
• Jun: EU member states to have plans in place for releasing the 700MHz band, facilitating 5G
• Jun: FCA sandbox cohort 4 firms to begin testing
• Q2: Revision of Commission guidelines on assessment of significant market power in the electronic communications sector (Digital Single Market)
• Q2: EU Commission review of Directive 2012/37/EU on the re-use of public sector information will create opportunities to open up government data for the benefit of society, reduce regulatory costs and simplify the existing legislation (Digital Single Market)
• Summer: DCMS Report on 5G plans
• Summer: Completion of phased roll-out of UK image-based cheque clearing system
• Summer: FCA interim report on Investment Platforms Market Study expected

Q3 2018

• 1 Jul: EBA recommendations on use of cloud service providers by financial institutions apply
• 13 Jul: Date from which FCA will remove authorisation, passports and agents from existing authorised Payment and Electronic Money institutions if they have not reapplied for authorisation under PSD2
• Q3: FCA review on outcomes testing on auto-advice

Q4 2018

• Oct: HMT Rent Recognition Challenge development phase concludes

2019 onwards

• Summer: EU Commission to report on Financial Data Standardisation (FDS) project (incl supervisory reporting)
• H2: EBA PSD2 RTS on strong customer authentication (SCA) and common and secure communication (CSC) estimated date of application
• By 2020: Enhanced functionality to BoE RTGS to be mostly operational (including interoperability with distributed ledger technology)
• By Jun 2020: all EU member states to have assigned the 700MHz band to mobile operators and made available for wireless broadband
• H1 2020: EU Commission report to EU Parliament and EU Council on implementation of MLD IV, proposals on virtual currencies and other matters (due 2 years after transposition of MLD V)
• 2020: EU introduction of 5G
• 13 Jan 2021: EU Commission to publish PSD2 review

Key contacts