European Commission eyes FinTech shakeup

Written by Anthony Strzalek

The European Commission has proposed reforms to enable further financial integration and a full Capital Markets Union, to promote jobs, growth and investment in Europe.

The proposals include steps to foster the development of FinTech and to ensure that sustainability considerations are systematically taken into account in supervisory practices at the European level.

The commission stated that more needs to be done to enhance regulatory and supervisory convergence within the Single Market to help financial markets work more effectively and to address new challenges.

As part of the reforms, the European Supervisory Authorities (ESAs) will promote sustainable finance, while ensuring financial stability. They will take into account environmental, social and governance-related factors and risks in all tasks.

The ESAs will also prioritise FinTech and will coordinate national initiatives to promote innovation and strengthen cyber security.

Valdis Dombrovskis, vice president for financial stability, financial services and Capital Markets Union, said: “Financial markets are changing fast. We are seeing renewed cross-border integration, new opportunities in FinTech and a boom in sustainable and green finance. The EU needs to act as one player so that we can stay ahead of the curve.

“More integrated financial supervision will make the Economic and Monetary Union more resilient. These pragmatic proposals will also make it easier for our companies to operate cross-border and build consumer trust.”