HM Treasury has published a consultation paper on an innovation plan for financial services.  This follows on from the Government’s previous announcement, in its Productivity Plan 2015, that departments will be required to work with regulators to publish innovation plans by Spring 2016.

This innovation plan covers the work of financial services regulators, those being the FCA, the PRA, the Bank of England (BoE) and the Payment Systems Regulator (PSR) and covers the following three key issues:

  • How new technology is shaping financial services.
  • How financial services regulators are adapting to new technologies and disruptive business models to encourage growth.
  • How financial services regulators are better utilising new technologies to generate efficiency savings and reduce burdens on business.

The consultation sets out ongoing and proposed work for a supportive regulatory framework that allows innovation to flourish.  In general, HM Treasury is seeking views on how the work of financial services regulators supports innovative and new business models, what the financial services regulators can do better to facilitate innovation growth in the financial sector and the existence of any potential gaps in the regulatory approach in supporting innovation.

The consultation is set to run until 6 May 2016.