April 6, 2016
Enormous development in FinTech has challenged the regulatory authorities. FinTech companies are on the rise while the regulations around them are still unclear. It is considered that the regulatory approach has not kept pace with the developments in the industry. This article focuses on the key developments which have taken place when it comes to regulating FinTech. The focus here has been on regulatory authorities who have done well to cope with the emerging FinTech landscape.
The UK’s financial regulator the FCA has been very proactive when it comes to regulating FinTech. The annual business plan released early this week by the FCA emphasizes on greater compliance among FinTech firms. This comes at the backdrop of the failure of Powa Technologies, which ran out of cash earlier this year. The authority welcomes innovative finance solutions but wants to ensure that regulations don’t go unchecked.
The regulator supports the FinTech industry and provides transparency by creating a level playing field. They have many supporting measures; the important ones are listed below:
Tax measures: Numerous tax incentives are provided by the government to encourage innovation in FinTech. They include the Enterprise Investment Scheme (EIS), the Seed Enterprise Investment Scheme (SEIS), Entrepreneurs’ Relief (ER), R&D tax credits, the Employee Share Scheme (ESS), the Pate ...