Fintech regulation - what is in the pipeline?

Here is our latest timeline covering key UK and EU regulatory developments in the pipeline.

Q2 2018

• 20 Jun: Deadline for responses to Financial Conduct Authority (FCA) Call for Input on using technology to achieve smarter regulatory reporting
• 30 Jun: Prudential Regulation Authority (PRA) supervisory statement on algorithmic trading to apply
• 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
• Summer: Department for Digital, Culture, Media and Sport on 5G plans
• Summer: Completion of phased roll-out of UK image-based cheque clearing system
• Summer: UK Financial Reporting Council (FRC) investigating potential uses of AI in corporate reporting

Q3 2018

• 1 Jul: European Banking Authority (EBA) recommendations on use of cloud service providers by financial institutions apply
• 13 Jul: Date from which FCA will remove authorization, passports and agents from existing authorized Payment and Electronic Money institutions if they have not reapplied for authorization under PSD2
• Jul: Financial Stability Board in consultation with Committee on Markets and Infrastructure, International Organization of Securities Commissions and Financial Action Task Force to support their work on crypto-assets
• Q3: FCA review on outcomes testing on auto advice
• Q3: FCA interim report on investment platforms market study expected
• Q3: FCA, HM Treasury (HMT) and Bank of England (BoE) assessment report: Review of cryptocurrencies expected
• Q3: FCA financial crime review of e-money report expected
• Q3: Feedback statement to FCA Quarterly Consultation Paper 18/6, Chapter 3 on changes to reporting requirements in the Supervision Manual
• Q3: European Securities and Markets Authority (ESMA) fintech licensing mapping exercise
• Q3: ESMA initial coin offering market analysis
• Autumn: UK FRC to report on potential uses of artificial intelligence in corporate reporting
• Autumn: Single Financial Guidance Body to be established
• H2: BoE to publish summary finding of Proof of Concept work on how a renewed RTGS service could support settlement in distributed ledger technology based systems

Q4 2018

• Oct: HMT Rent Recognition Challenge development phase concludes
• 3 Dec: EU new rules against unjustified geo-blocking apply

H1 2019

• 14 Mar: Art 30(3) and (5) of EBA Payment Services Directive 2 (PSD2) Regulatory Technical Standards (RTS) on strong customer authentication and common and secure communication applies
• 30 Mar: (Subject to transitional arrangements) UK persons/organisations no longer eligible to register/renew '.eu' domain names
• Q1: FCA outcomes testing on auto advice activity
• By May: Legislative changes to deliver the EU New Deal for Consumers on statute book (including technology considerations)
• Early 2019: Start of EU Quantum Technology Flagship projects
• 2019: European Insurance and Occupational Pensions Authority (EIOPA) InsurTech Task Force (EIOPA ITF) focus on convergence in the supervision of algorithms
• 2019: EIOPA ITF may make proposals on supervision of new business models and the (re) insurance value chain arising from InsurTech
• 2019: Possible EIOPA European Insurance Innovation Hub
• 2019: EBA will conduct work on alternative dispute resolution and financial exclusion in the context of big data algorithms
• 2019: EBA to assess potential financial exclusion and applicability of the Alternative Dispute Resolution Directive to fintech firms
• Summer: EU Commission to report on Financial Data Standardisation project (including supervisory reporting)

H2 2019

• 14 Sep: EBA PSD2 RTS on strong customer authentication and common and secure communication applies

2020 onwards

• By 2020: UK to have introduced fully-funded basic digital skills training for adults
• By 2020: UK new broadband Universal Service Obligation
• 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