RegTech Weekly Roundup

RegTech Weekly Roundup

According to one recent report, London has now overtaken New York to become the world’s number one city for FinTech investment.

IA Fintech Member Insights: Clausematch


Good morning!

I hope you had a great weekend.

In this week’s edition of the RegTech X, I highlight some of the large regulatory fines that have been handed out to financial institutions recently. Here in the UK, insurance giant Prudential has been fined nearly £24 million for failures in relation to its treatment of customers, while in the US, formidable fines have been handed out to brokerage companies and crypto-asset firms.

There are also some interesting articles that look at the UK’s dominance in the FinTech sector. According to one recent report, London has now overtaken New York to become the world’s number one city for FinTech investment. If you have some spare time this week, there’s a fantastic video that reveals how the UK became a major FinTech hub.

You’ll also find the latest developments in relation to RegTech, crypto-asset regulation, and money laundering.

Read on to find out more! ☕




Regulator UK 

The Financial Conduct Authority (FCA) has fined Prudential £23,875,000 for failures relating to non-advised annuity sales. According to the regulator, Prudential failed to ensure that customers were consistently informed that they may get a better deal if they shopped around. (FCA) 2 mins

The FCA has also been cracking down on peer-to-peer (P2P) lending firms recently. According to The Times, the regulator has sent a letter to 65 P2P lending firms, warning them that the industry must clean up poor practices or face a ‘strong and rapid’ crackdown. (Money Saving Expert) 3 mins


Regulator EU

The European Securities and Markets Authority (ESMA) has recently revealed its plans for 2020. The regulator said that it will focus on the implementation of its new mandates in areas such as direct supervision, supervisory convergence, investor protection, relations with third countries, sustainability, and technological innovation. (ESMA) 2 mins

In relation to Brexit, ESMA said that it will continue to prepare for both a no-deal Brexit scenario, where it will focus on managing the immediate risks and issues, and the scenario where a withdrawal agreement is in place. (Asset Servicing Times) 2 mins

Also in Europe, the European Central Bank (ECB) has recently warned Malta to strictly monitor its banks amid growth of the cryptocurrency industry. In light of Malta’s leading role in blockchain and crypto technology, risks need to be managed in a more stringent and coherent manner, according to ECB chair Andrea Enria. (The Block) 1 min

Regulator US
Two brokerage firms that connect banks in the foreign exchange market have agreed to pay $25 million to settle fraud claims in the US. According to the US Commodities Futures Trading Commission (CFTC), BGC Financial and GFI Securities made false representations that certain trades had occurred and that bids and offers were executable on their emerging markets foreign exchange options desks. (The Trade News) 2 mins

A start-up behind one of the largest initial coin offerings (ICOs) of the past several years has also been fined $24 million by the US Securities and Exchange Commission (SEC). This represents one of the largest fines since the SEC began a crackdown on ICOs in 2017. (The Wall Street Journal) 3 mins

Meanwhile in the US, the House Committee on Financial Services recently grilled the SEC on the state of cryptocurrency regulation. The head of the SEC refused to say whether Facebook’s Libra would be regulated as a security under his watch. (Reuters) 2 mins


Regulator Asia 

Japan’s financial regulator the Financial Services Agency (FSA) has published draft guidelines for funds investing in cryptocurrencies. The FSA said that it believes that it needs to carefully handle the formation and sale of investment trusts that invest in crypto-assets. (Token Post) 2 mins

The Monetary Authority of Singapore (MAS) and Thailand’s Office of Insurance Commission (OIC) have signed a memorandum of understanding (MoU) to enhance cooperation in insurance supervision. The MoU will provide a framework for cooperation, exchange of information, and assistance in insurance supervision. (Insurance Business Asia) 1 min



A recent report from law firm Ashurst and trade association UK Finance has revealed that the Senior Managers and Certification Regime (SMCR) has created ‘meaningful change’ in financial institutions. The report said there has been a tangible change in culture, behaviour and attitudes towards risk within firms. (CDR) 3 mins


Infrasoft Technologies and IBS Intelligence have recently put together a RegTech whitepaper that examines what RegTech means for firms in the financial industry. The report highlights how banks and financial institutions have increased their focus on regulatory compliance and are investing more heavily in technology to avoid regulatory lapses. (IBS Intelligence) 2 mins

At a recent technology event in New York hosted by the Securities Industry and Financial Markets Association (SIFMA), regulatory and compliance experts discussed the growth of RegTech and looked at the impact it’s having on companies. One of the big advantages of RegTech, according to Kavita Jain, director of the Financial Industry Regulatory Authority’s (FINRA) office of financial innovation is that it can proactively identify risk factors. (Investment News) 2 mins

Meanwhile, at the City & Financial Global’s annual Regtech Automation and Compliance Forum in London, experts recently discussed how advanced technologies will change the way that institutions are regulated. (Securities Finance Monitor) 3 mins

Financial technology group Broadridge announced last week that it is teaming up with FundsLibrary, a provider of digital fund data and regulatory solutions, in order to provide RegTech solutions for European wealth and asset managers. The two companies are developing an offering to address the challenges posed by MiFID II Ex-Post Costs and Charges and Solvency II. (Crowdfund Insider) 2 mins



London has overtaken New York to become the world’s number one city for investments in FinTech, a recent report has revealed. In the first eight months of 2019, London attracted 114 investments with a value of more than $2bn, according to Innovate Finance and London & Partners. (City AM) 2 mins

However, as emerging markets scale rapidly, the UK must drive innovation to remain a major global FinTech hub, according to Peter Estlin, Lord Mayor of the City of London. Estlin also warned that the speed at which banks onboard new customers must increase. (Bobsguide) 2 mins

On the topic of FinTech, if you have a bit of spare time this week, there’s a great video here that looks at the rise of FinTech in the UK. The video by 11FS explains how the Global Financial Crisis ultimately led to the FinTech revolution and looks at how the UK has created a FinTech ecosystem that is the envy of the world. (The Finanser) 1 hour



If you’re interested in learning more about how artificial intelligence will impact banking, there’s a good video here from Finextra that features interviews with banking experts that took place at Sibos 2019. (Finextra) 5 mins

The emergence of artificial intelligence and machine learning technologies will have a huge impact in the fight against money laundering, says Jayakumar Venkatarmaran, managing partner at Infosys Consulting. According to Venkatarmaran, now is the time for financial institutions to incorporate these advanced technologies. (International Banker) 3 mins



The three European supervisory authorities, ESMA, the European Banking Authority (EBA), and the European Insurance and Occupational Pensions Authority (EIOPA), last week published their second joint Opinion on the risks of money laundering and terrorist financing affecting the European Union’s financial sector. The regulators found that the monitoring of transactions and suspicious transactions reporting still raises concerns, particularly in sectors where a financial institution’s business model is based on frequent transactions. (EIOPA) 2 mins

In a meeting this week, European Union finance ministers will be considering whether they should set up a supervisor that would be responsible for money laundering cases. Despite several anti-money laundering overhauls recently, the EU still remains vulnerable.  (Reuters) 2 mins

HSBC has revealed a new anti-money laundering (AML) surveillance system and automated sanctions checking tool for its global trade and receivables finance business. The new AML system leverages big data, advanced analytics, and automated monitoring to detect and intercept financial crime in international trade. (Global Trade Review) 2 mins



Last week, The RegTech Summit took place in London. Next month, on 14 November it will take place in New York. You can find more details and the full agenda here(A-Team Insight) 2 mins


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