Ashley Alder emphasizes the need for global fintech regulation collaboration.
He stresses the importance of managing Big Tech's power and reaffirms the EU partnership.
The head of
the UK's Financial Conduct Authority (FCA) emphasized the need for global
coordination in regulating financial technology in the dynamically changing
world. The FCA's Chairman, Ashley Alder, said fintech innovation brings both
opportunities and risks that require "smart policy responses" from
regulators around the world.
FCA Chief Calls for
International Cooperation on Regulating Fintech
Speaking at
an event hosted by the UK Mission to the European Union, Alder highlighted
fintech as an area where international cooperation can support firms and
consumers while managing novel risks. He noted that fintech companies now rank
among the top banks in major European economies, driving disruption and
innovation across finance.
According
to Alder, regulators have a "fairly binary" approach to fintech. On
the one hand, they aim to foster environments where new ideas can flourish,
promoting competition, consumer choice and economic growth. He cited regulatory
sandboxes as an example of mechanisms that allow controlled experimentation.
However,
regulators must also remain alert to new risks arising from fintech, where
developing common international approaches is essential to protect stability
and competition.
"The
failure of SVB and other problems with banks last year was a prime illustration
of how technology has massively accelerated the speed at which bank runs can
develop," Alder said. "This requires smart policy responses which don't
increase moral hazard."
However, it is important that regulation does not impede the development of an industry that is already on the brink of crisis.
Troubles of the UK's Fintech Sector
In 2023, the fintech sector in the United Kingdom experienced a notable decline in funding, as highlighted by a recent report from Tracxn. This downturn saw local fintech companies raising only $4.2 billion, a stark reduction of 63% from the $11.2 billion recorded in 2022. Despite this setback, the UK maintained its position as the second-largest global hub for fintech funding.
The significant drop in investment to $4.2 billion from the previous year's $11.2 billion is indicative of the broader macroeconomic challenges currently affecting the sector. Factors such as rising interest rates and inflation have been key in diminishing investor confidence. This decline in funding for fintech startups in the UK is part of a larger, unfavorable trend affecting the global fintech industry.
Finance Magnates had reported at the start of 2023 that global fintech funding had already decreased 30% in 2022, totaling $95 billion. This period proved especially challenging for fintech companies, which experienced greater difficulties securing investments than their counterparts in the broader financial and technology sectors. The downturn underscores the importance of regulatory frameworks that support the industry's growth without imposing undue barriers, especially as these companies navigate the verge of a crisis.
Big Tech also in Focus
The FCA
chief's speech focused on the evolving role of Big Tech companies
across finance. He raised concerns about the potential for firms like Amazon
and Google to leverage their digital data and activities when combining it with
financial customer information.
Alder said
this data concentration could allow Big Tech to gain "entrenched market
power" through advanced analytics and AI. While benefits may arise from centralized
customer data in a few tech giants, Alder reiterated that regulators globally
need to coordinate addressing incentives and common approaches.
"For
example, last November the FCA issued a call for input about the way in which
Big Tech firms could gain advantages from their digital activities when they
combine core business data with financial information sourced from different
data sharing mechanisms," he added.
Commitment to EU
Partnership
In conclusion,
Alder said the UK and EU "must lead by example" in their bilateral
relationship and interactions with other regulators. He reaffirmed the FCA's
commitment to seizing opportunities from Brexit while avoiding regulatory
fragmentation.
"We recognize
that in key areas the EU and UK are pursuing similar reforms which, although
not identical, signal common causes," Alder explained. "We are fully
alive to the dangers of regulatory fragmentation, and while I believe that we
should avoid talking about reforms in terms of 'divergence' between the UK and
EU, I can also say that we won't be pursuing change for change's sake."
Alder
welcomed last year's UK-EU cooperation agreement on financial services. He said
deepening information exchange and collaboration with European regulators
remains a priority amidst reform efforts on both sides. He was
officially appointed as the new president of the FCA in January 2023, although the
information about his transfer firstly appeared in mid-2022. Previously, he
worked as the CEO of Hong Kong's Securities and Futures Commission.
The head of
the UK's Financial Conduct Authority (FCA) emphasized the need for global
coordination in regulating financial technology in the dynamically changing
world. The FCA's Chairman, Ashley Alder, said fintech innovation brings both
opportunities and risks that require "smart policy responses" from
regulators around the world.
FCA Chief Calls for
International Cooperation on Regulating Fintech
Speaking at
an event hosted by the UK Mission to the European Union, Alder highlighted
fintech as an area where international cooperation can support firms and
consumers while managing novel risks. He noted that fintech companies now rank
among the top banks in major European economies, driving disruption and
innovation across finance.
According
to Alder, regulators have a "fairly binary" approach to fintech. On
the one hand, they aim to foster environments where new ideas can flourish,
promoting competition, consumer choice and economic growth. He cited regulatory
sandboxes as an example of mechanisms that allow controlled experimentation.
However,
regulators must also remain alert to new risks arising from fintech, where
developing common international approaches is essential to protect stability
and competition.
"The
failure of SVB and other problems with banks last year was a prime illustration
of how technology has massively accelerated the speed at which bank runs can
develop," Alder said. "This requires smart policy responses which don't
increase moral hazard."
However, it is important that regulation does not impede the development of an industry that is already on the brink of crisis.
Troubles of the UK's Fintech Sector
In 2023, the fintech sector in the United Kingdom experienced a notable decline in funding, as highlighted by a recent report from Tracxn. This downturn saw local fintech companies raising only $4.2 billion, a stark reduction of 63% from the $11.2 billion recorded in 2022. Despite this setback, the UK maintained its position as the second-largest global hub for fintech funding.
The significant drop in investment to $4.2 billion from the previous year's $11.2 billion is indicative of the broader macroeconomic challenges currently affecting the sector. Factors such as rising interest rates and inflation have been key in diminishing investor confidence. This decline in funding for fintech startups in the UK is part of a larger, unfavorable trend affecting the global fintech industry.
Finance Magnates had reported at the start of 2023 that global fintech funding had already decreased 30% in 2022, totaling $95 billion. This period proved especially challenging for fintech companies, which experienced greater difficulties securing investments than their counterparts in the broader financial and technology sectors. The downturn underscores the importance of regulatory frameworks that support the industry's growth without imposing undue barriers, especially as these companies navigate the verge of a crisis.
Big Tech also in Focus
The FCA
chief's speech focused on the evolving role of Big Tech companies
across finance. He raised concerns about the potential for firms like Amazon
and Google to leverage their digital data and activities when combining it with
financial customer information.
Alder said
this data concentration could allow Big Tech to gain "entrenched market
power" through advanced analytics and AI. While benefits may arise from centralized
customer data in a few tech giants, Alder reiterated that regulators globally
need to coordinate addressing incentives and common approaches.
"For
example, last November the FCA issued a call for input about the way in which
Big Tech firms could gain advantages from their digital activities when they
combine core business data with financial information sourced from different
data sharing mechanisms," he added.
Commitment to EU
Partnership
In conclusion,
Alder said the UK and EU "must lead by example" in their bilateral
relationship and interactions with other regulators. He reaffirmed the FCA's
commitment to seizing opportunities from Brexit while avoiding regulatory
fragmentation.
"We recognize
that in key areas the EU and UK are pursuing similar reforms which, although
not identical, signal common causes," Alder explained. "We are fully
alive to the dangers of regulatory fragmentation, and while I believe that we
should avoid talking about reforms in terms of 'divergence' between the UK and
EU, I can also say that we won't be pursuing change for change's sake."
Alder
welcomed last year's UK-EU cooperation agreement on financial services. He said
deepening information exchange and collaboration with European regulators
remains a priority amidst reform efforts on both sides. He was
officially appointed as the new president of the FCA in January 2023, although the
information about his transfer firstly appeared in mid-2022. Previously, he
worked as the CEO of Hong Kong's Securities and Futures Commission.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Wells Fargo Unveils Signify Business Cash Mastercard for Businesses
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
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Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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🔔 Subscribe to our YouTube channel for more!🔔
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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