The EBA published the findings of its analysis on the regulatory framework applicable to FinTech firms when accessing the market. The Report illustrates the developments on the regulatory perimeter across the EU, the regulatory status of FinTech firms, and the approaches followed by competent authorities when granting authorisation for banking and payment services.
The national regulatory status of FinTech firms with innovative business models or delivery mechanisms shows two developments:
the shift from non-regulated to regulated activities – notably payment initiation services and account information services now being subject to PSD2; and
the ancillary/non-financial nature of the services provided by FinTech firms not subject to any regulatory regime, with the exception of crowdfunding and to some extent activities related to crypto-assets.
The EBA findings show few national legislative developments that could potentially create an EU unlevelled playing field. On crowdfunding, the EBA takes note of the Commission's Proposal for Regulation on crowdfunding service operators. On crypto-asset related activities, the Report refers to the EBA January Report on crypto-assets and the follow-up actions.
As to authorisation approaches, the EBA found that proportionality and flexibility principles are applied in the same way by competent authorities irrespective of whether the applicant presents a traditional or innovative business model and/or delivery mechanism.
In the context of PSD2, the EBA's monitoring will observe whether such principles are used to fast track applicants. The EBA will also carry out additional monitoring with a view to better assessing the specificities of the national special regimes allowing granting authorisation as a credit institution with a lower capital of at least EUR 1 million and their application to FinTech applicants.
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