Establishing regulatory sandboxes for FinTech companies in the European Union to foster the development of the FinTech Sector – an analysis
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Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad ESAN
Redes Sociales
Citación
Citación APAAbstract
This paper aims to find an answer to the question whether and to what extent the
concept of a Regulatory Sandbox for FinTech companies should be applied at
the supranational level of the European Union. In several steps the term
"FinTech" will be narrowed down and its effects on the global financial sector
analyzed. Afterwards, the three most common regulatory approaches are
presented, whereby the Regulatory Sandbox is described in more detail using the
sandbox of the Financial Conduct Authority from the United Kingdom as an
example. Finally, the relevant regulatory authorities in the EU are discussed. The
results make clear that the economic importance of FinTechs is increasing
significantly. Considering the fact that FinTechs from Great Britain account for
almost three quarters of the total market volume, it is still clear that the EU must
become much more attractive in the face of the coming Brexit in order not to
lose ground globally. One way to do so is to provide regulatory certainty. A
regulatory sandbox is suitable for this purpose, as it reduces uncertainty for
companies and makes them more attractive for investors. Regulators also benefit
from receiving direct feedback on their regulatory framework and being able to
adapt and develop it accordingly. It is proposed that in the run-up to a joint
European sandbox, interested National States establish their own national
sandboxes, whereby all of them should decide slightly differently on both the
structure and the objectives. Based on the experiences of the National States, it
is up to the competent authorities in the EU to prepare a supranational sandbox.
When implementing the establishment of such sandbox, clear coordination and
responsibility of the actors as well as the assumed demand and potential
problems have to be considered carefully.
Description
Keywords
Mercado financiero, Regulación, Inversiones, Tecnología financiera
