Digital asset activities of licensed institutions must be approved and will be assessed for potential safety and soundness risks. By Arthur S. Long, Pia Naib, and Deric Behar On December 15, 2022, the New York State Department of Financial Services (NYDFS) issued final guidance to covered institutions engaging in (or seeking to engage in) virtual currency-related … Continue Reading
The FinTech sandbox would aim to foster innovation in the financial, credit, and insurance sectors. By Antonio Coletti and Isabella Porchia The Italian Ministry of Economy and Finance has launched a public consultation on a draft ministerial decree (Draft Decree) implementing the mandate received by the Italian legislature (Decreto Crescita) to set up a regulatory … Continue Reading
US lawmakers urge FSOC to designate cloud-based storage systems used by major banks as systemically important financial market utilities. By Alan W. Avery, Victoria McGrath, and Pia Naib In an August 22, 2019, letter addressed to Treasury Secretary Steven Mnuchin, in his capacity as chair of the Financial Stability Oversight Council (FSOC), Congresswoman Katie Porter … Continue Reading
While the payments industry scrambles to meet new standards for APIs, the FCA grants an extension for SCA compliance. By Christian F. McDermott, Jagveen Tyndall, and Amy Smyth In an effort to evaluate the readiness of banks to comply with the revised EU Payment Services Directive (PSD2), Tink, a banking platform and data provider, has … Continue Reading
The Federal Reserve is finally stepping into the real-time payments arena. By Todd Beauchamp, Loyal T. Horsley, and Deric Behar On August 5, 2019, the Board of Governors of the US Federal Reserve System (the Fed) announced that it plans to roll out a real-time payment and settlement service by 2023 or 2024. The service, … Continue Reading
Latest FCA and PRA fines against a retail bank show little tolerance for poor outsourcing systems and controls. By Fiona M. Maclean, Christian F. McDermott, Laura Holden, and Charlotte Collins On 29 May 2019, the FCA and PRA announced that they had fined an independent UK bank for failing to manage its outsourcing arrangements properly … Continue Reading
The HKMA has issued three virtual banking licenses as part of its broader initiatives to develop the local banking industry. By Simon Hawkins and Kenneth Hui The Hong Kong Monetary Authority (HKMA) recently announced the issuance of the first virtual banking licenses to three entities. Virtual banks in Hong Kong are banks that primarily deliver … Continue Reading
Driven by payments innovation and new regulation, 2018 is cited as the year for some of the most significant changes retail banking has seen. By Stuart Davis and Brett Carr At the Westminster Business Forum for Digital Payments, Adoption, Innovation and Policy Priorities, Graeme McLean (Head of Banking, Lending & Distribution at the FCA) appraised … Continue Reading
