Briefing on application procedures for FT Lab. 28th of February 2018

Transcription

1 Briefing on application procedures for FT Lab 28th of February 2018

2 The mandat of the FSA Our mandate The task of the Danish FSA is to contribute to financial stability and promote public and corporate confidence in the Danish financial sector. Our new mandate Brian Mikkelsen, Minister for Industry, Business and Financial Affairs: The government wants to make it easier for financial entrepreneurs to get started and to make it more attractive to be a fintech entrepreneur in Denmark. The establishment of the fintech initiatives in Finanstilsynet will ( ) make it easier and more attractive to establish oneself as a fintech in Denmark.

3 Our five initiatives Guidance Hand-held Start Up FT Lab Fintech Forum Intl. cooperation

4 Guidance and hand-held start up Improved guidance to fintechs N.B. guidance not counselling Faster reaction to new techs and trends Orientation on ICO s Contact fintech@ftnet.dk So far 500+ inquiries

5 Fintech Forum Newly established forum Chaired by the FSA By invitation only Approx. 20 members Objective: To enhance the understanding of the regulation of fintech and the use of new technology within the financial sector as well as within the FSA.

6 Members Finanstilsynet CrowdInvest November First Lunar Way NewBanking Forsikring & Pension Top Danmark Finans & Leasing Nets Spar Nord Tryg Danske Bank Finans Danmark Copenhagen Fintech Dansk Erhverv Finansforbundet CBS KPMG Danske advokater v/ Kromann Reumert Forbrugerrådet TÆNK DI

7 International collaboration Nordic collaboration Participation on EU discussions and the rest of the world

8 FT Lab

9 Purpose The Danish FSA has established the FT Lab with the overall purpose of: Providing a basis for testing innovative financial products and services Promoting the development of beneficial financial products and services for the consumers and the society Enabling the Danish FSA to better understand fintech Supporting the use of new technology in the financial sector However, it is important to note that companies participating in the FT Lab are subjects to the applicable legislation.

10 Introductory remarks Our take on a regulatory Sandbox. No reason to reinvent the wheel. Inspiration from countries with existing sandboxes Important to note, it is a learning process also for Finanstilsynet. Access to FT Lab will initially be limited to a few companies and based on an application procedure. Finanstilsynet will build on the experience from the first companies in FT Lab an reopen for applications at a later stage.

11 What can you do in FT Lab? Safe space to test new business models and/or new technology. Uncertainty about regulation of either technology or business model. Test your product on real costumers, and in real market scenarios together with Finanstilsynet. Limited number of users, under conditions agreed with Finanstilsynet. Important! Finanstilsynet cannot provide you with users. You will have to build your own user base.

12 Who is FT Lab open for? Companies with an existing license Companies without a license Delivers technology to companies that have activities which require a license. Wants to begin activities that require a license as: Electronic money institution (restricted) Payment institution (restricted) Account information services provider (AISP) AIFM Investment advisors Investment firms Insurance intermediaries Companies with uncertainty as to whether activities require a license

13 Application Deadline for applications Review Selection Meeting with company Drafting testplan Setting up regulatory frame (license) Start testing Test and monitoring Finish testing Report and evaluation Deadline for application 23rd of March (strictly enforced) Finanstilsynet reviews all applications Efforts to provide an answer to all applicants before 23 April Meeting with company determining the how and the what. Finanstilsynet and chosen company draft test plan together based on prior meeting Finanstilsynet determines with regulatory setup based on test plan

14 Criteria All applications will be assessed based on five eligibility criteria: Is the activity directly or indirectly covered by the financial legislation? Is the technology or the business model new? Is the product or the service beneficial for the consumers and/or the society? Is there a need to participate in the FT Lab? Is the company ready to test in the FT Lab?

15 Eligibility criteria Criteria Is the company directly or indirectly included in the financial regulation? Is the technology or business model new? Is the service or product beneficial for society and/or consumers? Key question Does the innovation involve a financial activity? Does the innovation or business model improve an existing financial activity or is it new? Does the innovation create identifiable benefits e.g. by providing cheaper or more transparent solutions? Examples of positive factors The innovation involves a financial service or product. The financial regulation covers the activity. The innovation is a technical service that supports delivery of financial activities. There are no comparable services or products in the financial market. Based on desk research, Finanstilsynet assesses that the technology or business model is innovative. The innovation may create possible services or products that are better, cheaper, more effective or of better quality. The company has identified possible consumer risks and proposes mitigating solutions The innovation or business model contains suitable consumer protection The innovation encourage consumers to make rational choices. Examples of negative factors The innovation is not a financial service or product. The financial regulation does not cover the activity. There are multiple similar products. Based on desk research, Finanstilsynet does not assess the service or product as innovative. A well-known service or product promoted as new. No evident benefits. Opaque business model. Negative impact on consumers, the market or the financial system. The innovation or the business model does not contain suitable consumer protection. The innovation encourage consumers to make irrational choices.

16 Eligibility criteria Is there a need to enter into FT Lab? Does the company actually need to be included in the FT Lab? There is no clear fit between the innovation and the financial regulation. There is a clear testing need for the service or product on the real market. The company has no alternative ways to involve Finanstilsynet or to initiate testing. There is no need for testing to accomplish the goal of applying to FT Lab. The company is better or more effectively helped by other initiatives directed towards fintechs. The company can execute the test without the help of Finanstilsynet. Is the company ready to take part in the FT Lab testing procedure? Is it possible to test the innovation live and with real customers? The company has a clear procedure to attract the necessary amount of customers to complete testing. The innovation is adequately mature by having e.g. developed test plans including clear targets, parameters and criteria of success. The technical solution is ready for user testing. The company has adequately thought through relevant ICT and data security issues. The company has access to necessary competencies to lead the project prudently. The purpose if testing is unclear. Test plans are incomplete. The technical solution is not ready for user testing. The company does not have the necessary resources or competencies to lead the project prudently.

17 Questions?