The Treasury has launched a review as part of a key aim to “ensure the UK is supporting the development of new business models and disruptive technologies, breaking down barriers to entry and boosting productivity”.
A consultation has been released asking the following questions of regulated and unregulated firms and innovators in the financial services sector:
1. Does the UK’s regulatory environment for financial services effectively support innovation?
2. Do financial services regulators understand innovation in financial services and potential areas where new technologies and disruptive business models might emerge in the sector?
3. Are there any gaps in approach or areas where financial services regulators should be doing more to support innovative technology and disruptive business models in financial services?
4. Is there more that financial services regulators could do to better utilise new technologies to deliver their own work more effectively?
The government said the UK’s regulation and enforcement frameworks must be “agile enough to respond flexibly to continuing developments in new technologies and disruptive business models”.
The Treasury document stated: “The purpose of this consultation is to set out ongoing and proposed work to foster a supportive regulatory framework for financial services that allows innovation to flourish.”
The innovation plan covers three issues:
• How new technology is shaping financial services
• How financial services regulators are adapting to new technologies and disruptive business models to encourage growth
• How financial services regulators are better utilising new technologies to generate efficiency savings and reduce burdens on business
The innovation plan covers the work of the Financial Conduct Authority, Payment Systems Regulator, Prudential Regulation Authority and the wider Bank of England.
The consultation will run until May.
Responses should be sent by email to This email address is being protected from spambots. You need JavaScript enabled to view it. or by post to:
Innovation Plan consultation
Banking and Credit team
HM Treasury
1 Horse Guards Road
London SW1A 2HQ