Financial services legislation: Remaining relevant in the digital age

Technology is transforming financial services (‘FS’) at an unprecedented rate, yet much of the legislation that underpins the sector was written over a century ago. This disparity presents challenges for consumers and sector participants and, potentially, restricts innovation.

A number of major FinTech initiatives have been set up over the past two years aimed at tackling legislative blockers which has led to bold legislative and regulatory changes focussed on fostering digital innovation across FS.

The next phase of legislative reform (FinTech 2.0) should focus on six specific priority areas:

  • AML/KYC
  • Challenger Banks
  • Blockchain
  • Enterprise management incentive (‘EMI’) options & tax matters
  • Cybersecurity & data handling
  • E-signatures.

This report looks at certain ways in which UK legislation and regulation could be updated to enable our financial services sector to innovate, go digital and ultimately, deliver wider benefits to consumers, businesses and the banking industry.