The Channel Islands have submitted a coordinated response to the European Commission’s consultation on “FinTech: a more competitive and innovative European financial sector”.
FinTech and RegTech are transforming the way the financial sector both provides services to customers and interacts with governments, regulators and others. Jersey and Guernsey, therefore, welcome engagement with the EU on this topic, in particular, the opportunity to share their views on ways to improve customer service and compliance with specific requirements, such as customer due diligence under anti-money laundering legislation. In this regard, Jersey’s eVID project which looks to automate identity document verification is referenced in the response. FinTech is already transforming the Channel Islands financial sector, increasing the number of technology-orientated roles and requirements for new skills. The Islands are monitoring closely how automation can improve compliance officers effectiveness by enabling them to focus on high-skilled tasks such as risk assessment, which provides real value in tackling financial crime. More generally, the Islands would welcome initiatives by the European Commission to engage in dialogue on electronic trust services and eID solutions with third countries.
The European Commission asks in the consultation how it can support further developments in the field. The Channel Islands consider more could be done to enable non-EU providers to contribute their skills, expertise and capital so that funds flow to EU start-ups, further developing the single market. They would also support the Commission in promoting international standards as well as increasing regulatory/supervisory cooperation and sharing of good practice with third countries, such as those adopting sandbox arrangements. To ensure positive uptake of new technological solutions by industry, the islands stress that international bodies, including the EU, can boost industry confidence by providing clear statements on acceptable use of technology.
Guernsey and Jersey look forward to reading the results of the consultation and to continued engagement with the EU on this topic.