EC explores new fintech passporting regime

Added 17th March 2017

The European Commission (EC) is considering new passporting regimes to ensure a level playing field for financial technology companies.

EC explores new fintech passporting regime

In a recent speech before the Swiss Finance Council, EC director-general in the financial stability, financial services and capital markets union Olivier Guersent confirmed the newly minted task force would be “closely monitoring” fintech businesses around the world. 

Formed last November, the task force is comprised of experts overseeing technological developments, data and competition issues to promote a level playing field between market participants.  

“EU financial legislation is activity-based, and therefore any firm carrying out a specific regulated activity has to comply with the relevant EU rules, in a proportionate manner of course,” he said.

“‘Same activity, same rule’ and ‘proportionality’ together ensure a level playing field between all market participants.”

At a time when there is so much cross-pollination between the finance and tech sectors, certain “innovative,” hybrid institutions may find it harder to identify the “relevant framework,” Guersent said.

As such, the task force has been charged with determining whether existing EU policies are fit to regulate these newer entities or whether brand new licensing and passporting regimes need to be introduced - a course of action already being pursued by the Swiss government.

Guersent added the EC’s task force would be mindful of preserving the innovation and natural competitiveness of the fintech industry.

“Although this may appear somewhat unusual for the Commission as we are not supervisors, the task force is also looking beyond regulation to understand the impact of supervisory practices,” he explained.

“Innovative firms, regardless of whether they are startups or already established on the market, regularly express concern that EU and member state supervisory practices limit their ability to innovate and to offer services cross-border.

"They can be subject to disproportionate, inconsistent or overcautious application of regulatory requirements which were not designed for their new approaches, especially if the business model does not fit easily into the existing framework.”

The task force will also be looking at outsourcing practices between financial services and technology companies, identifying it as another area where “operational and supervisory challenges” can arise.

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address



Investment Strategy




PA Channel Islands 2017
PA Channel Islands 2017

Wednesday 24 May
Royal Yacht Hotel, Jersey

PA UK Equity 2017
PA UK Equity 2017

Thursday 15 June
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Investment Trusts 2017
PA Investment Trusts 2017

Tuesday 20 June
Furniture Makers' Hall

PA Income 2017
PA Income 2017

Tuesday 4 July
Radisson Blu Edwardian Bloomsbury Street Hotel