Buy now, pay later (BNPL) giant Klarna will start reporting data on customers' usage of its products to credit bureaus in the UK.
Regulators have traditionally responded to bad actors in financial innovation by attacking the underlying technology versus those wielding it as a weapon.
Korea's Financial Services Commission just issued a guideline that limits most individual investors from committing more than 10 million won ($8,750) to P2P investments in a year; those individuals who have earnings over 100 million won ($87,500) can still commit up to 40 million won to P2P; Korean P2P platforms are complaining that investments in any equity project or loan portfolio tend to be skewed to a few individuals who invest more than 10 million won (60% of investors fall into this category on average across platforms there), therefore the new regulation will drive up funding costs; regulators say this over-concentration of funds from few investors is precisely the trend they hope to curtail. Source
Passporting could increase fintech competitiveness across Europe as the UK prepares to leave the European Union; passporting would lower regulatory requirements for fintech firms in the European Union allowing them to operate more freely across Europe; it would also create greater incentive for firms to move their business to the European Union and away from London; the European Commission has launched a three month consultation period on passporting and new legislations for fintechs which will be followed with legislative proposals; on Thursday, March 23 the European Commission also published a plan for European Union financial services companies that will focus on reducing costs and increasing consumer protection. Source
Gensler said his biggest worry about the equity market was competition and consolidation. While retail investing has taken off, the PFOF that enables it is ripe for conflict of interest.
The paper, published by the President's Working Group on Financial Markets, argued that regulation must address defi money laundering and terrorism financing to create broader investor protection.
Superintendent of the Department of Financial Services Adrienne Harris discussed if fintech could live up to the promise of financial inclusion and state regulators' role in her keynote.
PeerIQ's weekly newsletter provides insight from a week in Washington, D.C. beginning with the SEC's Fintech Forum on Monday, November 14; Ram Ahluwalia participated as a panelist providing an industry perspective on the "Capital Formation" panel; newsletter also provides details on potential terms from the OCC in their fintech charter and highlights three bills affecting fintech; PeerIQ also discusses the effect of capital and liquidity rules on asset-backed securities from banks. Source
There is much recognition that blockchain, DLT, and associated technologies are potentially beneficial, with many use cases emerging.
[Editor’s note: This is a guest post from Ryan Metcalf, Head of Public Policy & Social Impact at Funding Circle.] Fintech...