EP adopts Fintech resolution

The EP has adopted a resolution on the influence of technology on the financial sector. The provisional version of the resolution focuses on the rapid development of applications of fintech technologies and notes that some may become of systemic importance. It looks at the benefits and risks of the developments and notes that some applications are maturing faster than others. It says the key for ensuring legislation adapts to innovation is to strike a better balance between regulating institutions and regulating the relevant activities – so that substantially the same regulation should apply to all those carrying out substantially the same activities. It notes some of the key dangers, not least the risk of cyber-attacks, and welcomes the measures taken so far to define an EU framework for Fintech. It calls on the EU authorities and member states to recognise the risks and advantages of Fintech and Regtech and to regulate properly but not create overlapping obligations. It specifically notes the need for technology-neutral application of existing data legislation including MLD2 and PSD2. It stresses the need for regulation to provide sufficient incentives structures for providers to invest adequately in cybersecurity.  The resolution also calls on the Commission to hold an annual conference looking at the risks of “unpermissioned” blockchain applications and for it to work towards interoperability between national e-identification schemes.