The FCA’s latest feedback statement (FS16/2) summarises the feedback received in relation to its consultation, Call for Input: Regulatory barriers to innovation in digital and mobile solutions, which was launched on 17 June 2015.
This feedback statement forms part of the FCA’s wider piece on innovation – Project Innovate – which is a hub/think tank designed to encourage businesses to bring new ideas and products into their sectors.
The document provides a high-level view on what is currently stifling innovation, identifying six key areas including customer due diligence and data protection. Feedback received states that the FCA should have a more “digitally conducive” environment. Interestingly, the FCA argues that its current principles and rules are deliberately broad and flexible in nature so that they can adapt to a changing environment. It highlights an argument that ‘over regulation,’ or introducing new regulation that addresses a specific type of technology, would have the potential to stifle rather than encourage innovation.
What this means for you
Building on this feedback statement, the FCA’s next steps include:
- addressing issues raised through a feedback statement to its smarter communications discussion paper
- seeking views on PSD2 implementation
- hosting a payments event in spring 2016.
Engaging with guidance and feeding into consultations will be key if real change is going to be made in this area.