Industry group calls for FinTech regulation rethink

TheCityUK and PA Consulting have released a report calling for a consolidation of the regulation that affects UK FinTech firms in order to ease the burden during the Coronavirus crisis.

The research found that while firms welcomed the UK’s progressive approach to sector regulation, FinTech leaders said that regulatory hurdles remain a barrier and difficult to understand.

“The sector is calling for FinTech regulation to be consolidated and made more user friendly, particularly if the UK is to maintain its global leadership in the market,” a statement explained.

Miles Celic, chief executive at TheCityUK, pointed out that more than 1,600 FinTech firms operating in the UK, before arguing that the sector needs further regulatory support to take its growth to the next level.

“The UK’s regulatory sandbox approach has been hugely successful and internationally acclaimed, but is starting to show limitations as the sector grows and matures,” he commented. “A broader framework needs to be developed with industry to reflect the expansion of the FinTech sector and ongoing regulatory development of maturing firms.”

Alex McGill, managing consultant at PA Consulting, said that the report highlighted pragmatic and actionable recommendations that industry and government can take. "As a global leader in this space, the UK should be striving to match the innovation of our FinTechs with the collaboration and support of our regulators.”

The report focused on four key elements which are essential to supporting the next stage of UK FinTech growth:

• Clarifying regulatory support and engagement.
• Building on success by delivering new initiatives.
• Integrating innovation across the supervisory framework.
• Strengthening support of FinTech expansion into overseas markets.

    Share Story:

Recent Stories


Safeguarding economies: DNFBPs' role in AML and CTF compliance explained
Join FStech editor Jonathan Easton, NICE Actimize's Adam McLaughlin and Graham Mackenzie of the Law Society of Scotland as they look at the role Designated Non-Financial Businesses and Professions (DNFBPs) play in the financial sector, and the challenges they face in complying with anti-money laundering and counter-terrorist financing regulations.

Ransomware and beyond: Enhancing cyber threat awareness in the financial sector
Join FStech editor Jonathan Easton and Proofpoint cybersecurity strategist Matt Cooke as they discuss the findings of the State of the Phish 2023 report, diving into key topics such as awareness of cyber threats, the sophisticated techniques being used by criminals to target the financial sector, and how financial institutions can take a proactive approach to educating both their employees and their customers.

Click here to read the 2023 State of the Phish report from Proofpoint.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.

Future of Planning, Budgeting, Forecasting, and Reporting
Sage Intacct is excited to present FSN The Modern Finance Forum’s “Future of Planning, Budgeting, Forecasting, and Reporting Global Survey 2022” results. With participation from 450 companies around the globe, the survey results highlight how organisations are developing their core financial processes by 2030.