The European Commission has presented an Action Plan that sets out ways to provide European consumers with greater choice and better access to financial services across the EU. There is a major focus on technology, given that innovative online services will drive progress towards a more integrated market for financial services. To that end, the Commission is also publishing a consultation on technology and its impact on the European financial services sector (so called ‘FinTech') to spur our work in this area.
The Action Plan
The Commission has identified three main strands of further work:
FinTech: the new frontier in financial services
In order to help the European FinTech sector operate freely across the EU and be competitive, the Commission intends to focus on three core principles: technology-neutrality, so that the same rules are applied to traditionally-sold products and services (e.g. via branches) as those sold digitally; this is to ensure innovation and a level-playing field. Second, proportionality so that the rules are suitable for different business models, size and activities of the regulated entities. Third, improved integrity to ensure transparency, privacy and security for consumers.
As a first step, the Commission invites all interested parties to respond to the FinTech consultation. The consultation aims to gather first-hand information on the impact of new technology on the entire financial sector. It will help to assess whether EU regulatory and supervisory rules are adequate and what future actions may be needed.
20th February 2019
25th January 2019