Creative Innovation and FinTech Laws & Regulations
How does one deal with innovation and new technology in a heavily regulated financial sector? Does it sound like navigating between the devil and the deep blue sea? It doesn’t have to be.
FinTech is an area of convergence, bringing together hardware, software, telecom, (big) data, data privacy, marketing, consumer protection, financial laws and regulations, Internet payments, security, cloud computing, apps, intellectual property, etc. This creates legal and regulatory challenges for financial institutions, FinTech start-ups, venture capitalists and regulators.
For example to assess whether the client’s (intended) activities require a license under financial supervision legislation, to verify whether the fintech solution constitutes an outsourcing and the role of the regulatory authority in that context, or to advise on the impact of (new) rules. For example: the new envisaged European rules on payment services (PSD2) and the new European legal framework for e-identity (eIDAS). And if all the fintech solutions have one thing in common: it is all not about the money! Fintech solutions create valuable data, while the re-use of such data for commercial purposes is still a sensitive subject from a privacy perspective.
This chapter will serve FinTech industry professionals, entrepreneurs, vendors and investors a quick guidance on what you need to know before to boldly go where no one has gone before…
Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this initial abstract are invited to share and like it so that it may be featured in a longer version.