On 9 March 2016, the FCA published a feedback statement (FS16/2) following its Call for Input on regulatory barriers to innovation in digital and mobile solutions.
In the Call for Input, the FCA noted that:
- Digital and mobile solutions can be more convenient for many consumers and offer efficiency and cost benefits to providers. As a result, digital technology is becoming integrated in all sectors of the economy.
- Applying digital solutions has become a top priority in the public sector in the UK and in the EU.
- It would like to understand better the strategic regulatory barriers and enablers, either in the UK or at EU level, that prevent development of digital and mobile solutions.
The Call for Input was positively received. The majority of respondents recognised the FCA’s work as part of its longer-term commitment to foster innovation and welcomed its engagement on these issues. Most responses requested greater clarity over regulatory definitions and also generally highlighted a number of perceived barriers that are currently preventing the greater use of all the available technology.
Based on the feedback received, the FCA now intends to:
- Explore the issues identified in the financial advice market through the Financial Advice Market Review.
- Address issues in relation to communications through a feedback statement to the smarter consumer communications discussions paper (DP15/5).
- Seek stakeholder opinion on implementation of the Payment Services Directive ll (PSD2). This will be done through industry engagement and a consultation on its current PSD Approach Document.
- Continue to assist with the implementation of the Fourth Money Laundering Directive – focussing on maximising its potential for digital solutions.
- Address the issues raised on the use of third-party cloud providers through its guidance consultation.