The International Organisation of Securities Commissions (IOSCO) has released a new report that says that changes resulting from FinTech are testing the boundaries of full disintermediation through the use of technology. IOSCO is the international body that brings together the world’s securities regulators and is a global standard setter for the securities sector. IOSCO develops, implements and promotes adherence to internationally recognised standards for securities regulation. It works with the G20 and the Financial Stability Board on the global regulatory reform agenda.
The report incorporates the finding of three surveys:
- the Committee on Emerging Risks (CER) and the Growth and Emerging Markets Committee (GEMC) survey to gain further insight on the types of FinTech firms in respective jurisdictions, key regulatory actions taken by members, and the practices of FinTech firms in onboarding investors;
- the CER, the Affiliate Members Consultative Committee, and World Federation of Exchanges survey on distributed ledger technology; and
- a GEMC survey reviewing the state of development of FinTech in emerging markets, including existing and potential regulatory implications.
The report particularly examines:
- Financing Platforms, including Peer-to-Peer (P2P) lending and equity crowdfunding (ECF)
- Retail Trading and Investment Platforms, including robo-advisers and social trading and investing platforms
- Institutional Trading Platforms, with a specific focus on innovation in bond trading platforms
- Distributed Ledger Technologies (DLT), including application of the blockchain technology and shared ledgers to the securities markets.