Insurance Europe has welcomed the European Commission’s latest FinTech Action Plan which sets out how the Commission plans to assist Europe in becoming a global hub for FinTech, with EU businesses and investors able to take advantage of the single market, while protecting customers’ interests.
The plan includes a pan-European label for platforms that will help crowdfunding platforms grow across the EU’s single market, enabling a platform licensed in one country to operate across the EU.
The Action Plan is part of the Commission’s efforts to build a Capital Markets Union (CMU) and a true digital single market for consumer financial services.
William Vidonja, head of conduct of business at Insurance Europe, said: “Insurance Europe supports the Fintech Action Plan’s underlying principle that the same rules should apply to everyone undertaking a similar activity that entails a similar risk.
“This is the only way to give consumers the protection they deserve. The Commission must ensure that any new rules — such as on EU-wide licensing — are applicable to both existing market players and market entrants to ensure fair competition.”
The Commission will host an EU FinTech Laboratory where European and national authorities will engage with tech providers in a non-commercial space as well as present a best practices blueprint on regulatory sandboxes, based on guidance from European Supervisory Authorities.
A regulatory sandbox is a framework set up by regulators that allows FinTech startups and other innovators to conduct live experiments in a controlled environment, under a regulator’s supervision.
In addition, an EU Blockchain Observatory and Forum has already been set up to report on the challenges and opportunities of crypto assets, the entity is working on a comprehensive strategy on distributed ledger technology and blockchain addressing all sectors of the economy.
Vidonja said that due to the fast pace of technological advances, “it is vital that rules or guidelines should be digital-friendly, technologically neutral and sufficiently future-proof,” he added that Insurance Europe “welcomes the fact that the Commission is continuing to allow markets and technologies time to develop before introducing binding legislation.
“Last but not least, the Commission must clarify the responsibilities of the various EU authorities, supervisors and local authorities in relation to innovation, digital technologies and the use of data,” he said.
