EBA欧洲银行-JC-2018-74-Joint-Report-on-Regulatory-Sandboxes-and-Innovation-Hubs_46页_748kb

FinTech: Regulatory Sandboxes and Innovation Hubs Report Summary

Core Content

This report, prepared by the European Supervisory Authorities (ESAs), provides a comparative analysis of innovation facilitators in the EU, including innovation hubs and regulatory sandboxes, in line with the European Commission's March 2018 FinTech Action Plan. The report outlines best practices for the design and operation of these facilitators and proposes options for future EU-level coordination.

Main Categories of Innovation Facilitators

1. Innovation Hubs

• Definition: A scheme allowing firms to engage with competent authorities on FinTech-related issues and seek non-binding guidance on regulatory compliance.
• Purpose: Enhance understanding of regulatory expectations and support firms in navigating innovation.
• Scope: Open to all firms, including unlicensed entities and technology providers.
• Legal Basis: Competent authorities rely on their general supervisory powers and statutory objectives, such as financial stability and consumer protection.
• Operating Models:
  • Some have dedicated FinTech teams.
  • Others use a 'hub and spoke' model with a coordinator.
• Phases:
  • Submission of Enquiries: Firms use dedicated channels to submit questions.
  • Assignment to Points of Contact: Queries are screened and assigned to relevant experts.
  • Response to Firms: Responses are typically non-binding and may involve multiple communication methods.
  • Record Keeping and Transparency: Some authorities publish FAQs or reports, while others maintain minimal transparency.
  • Follow-up Actions: Some authorities offer support in the authorisation process or review the need for regulatory changes.
• Participants:
  • Start-ups (most frequent users).
  • Regulated entities (often use traditional contact points).
  • Technology providers.
• Commonly Posed Questions:
  • Whether a certain activity requires authorisation.
  • Regulatory and supervisory obligations.
  • Issues related to new technologies like DLT, robo-advice, and cloud computing.
• Proportionality Tools:
  • Available in EU financial services law to tailor regulatory requirements.
  • Used by competent authorities to provide guidance on risk mitigation measures.

2. Regulatory Sandboxes

• Definition: A scheme enabling firms to test innovative financial products or services under a specific testing plan monitored by a dedicated function of the competent authority.
• Purpose: Facilitate understanding of the regulatory implications of FinTech innovations and assess their risks and opportunities.
• Scope: Limited to specific testing plans and does not disapply regulatory requirements.
• Key Features:
  • Firms must submit a testing plan for approval.
  • Supervisory discretion is used to allow testing under certain conditions.
  • Competent authorities ensure that appropriate risk mitigation measures are in place before authorising the test.
• Notable Jurisdictions:
  • A small number of Member States have established regulatory sandboxes.
  • Some jurisdictions have both innovation hubs and sandboxes.

Key Information and Best Practices

• Best Practices Identified:
  • Promote consistency in the design and operation of innovation facilitators.
  • Enhance transparency of regulatory and supervisory outcomes.
  • Facilitate cooperation with relevant domestic and third country authorities.
• Proposed Options for Future Work:
  • Development of Joint ESA guidance on cooperation and coordination.
  • Creation of an EU network to link national innovation facilitators.
• Role of ESAs:
  • Monitor national developments.
  • Promote an accommodative and common approach to FinTech across the EU.
  • Provide advisory support to the European Parliament, Council, and Commission.

Concluding Observations

• The majority of Member States have established innovation hubs, with a few implementing regulatory sandboxes.
• User experiences are still preliminary due to the relatively recent establishment of these initiatives.
• Strong interest from firms, especially new entrants, has been reported.
• Coordination and cooperation between authorities are essential to ensure a level playing field and to support the scaling of FinTech in the EU.

Next Steps

• The ESAs will continue to monitor and support the development of innovation facilitators.
• Further work in 2019 is expected to focus on accelerating access to market and scaling up FinTech through enhanced coordination.