scholarly journals Regulating Fintech in the EU: the Case for a Guided Sandbox

2020 ◽  
Vol 11 (3) ◽  
pp. 604-629 ◽  
Author(s):  
Wolf-Georg RINGE ◽  
Christopher RUOF
Keyword(s):  
Business Models ◽  
Financial Regulation ◽  
Legal Framework ◽  
Business Practices ◽  
Eu Member States ◽  
Market Participants ◽  
New Business ◽  
Real Market ◽  
Regulatory Problems ◽  
The Eu

New financial technology holds the promise of innovation and competition, challenging established products and services and frequently improving market processes. However, regulation of these new services faces a double challenge: to keep pace with innovation and facilitate new market entries while at the same time understanding and managing the regulatory risks that are involved.At this stage, the existing EU regulatory framework is of little help: the bulk of the present body of financial regulation stems from a different time, with different regulatory problems in mind. EU regulation is also very slow to change and to adapt. Therefore, this paper proposes a regulatory “sandbox” – an experimentation space – as a step towards a regulatory environment where such new business models can thrive. A sandbox would allow market participants to test fintech services in the real market, with real consumers, but under the close scrutiny of the supervisor. The benefit of such an approach is that it fuels the development of new business practices and reduces the “time to market” cycle of financial innovation, while simultaneously safeguarding consumer protection. At the same time, a sandbox allows for mutual learning in a technical field which is sometimes poorly understood, both for firms and for the regulator. This would help to reduce the prevalent regulatory uncertainty for all market participants.In the particular EU legal framework with various layers of legal instruments, the implementation of such a sandbox is not straightforward. In this paper, we propose a “guided sandbox”, operated by the EU Member States, but with endorsement, support, and monitoring by EU institutions. This innovative approach would be somewhat uncharted territory for the EU, and thereby also contribute to the future development of EU financial market governance as a whole.

scholarly journals Regulatory Lag, Regulatory Friction and Regulatory Transition as FinTech Disenablers: Calibrating an EU Response to the Regulatory Sandbox Phenomenon

2021 ◽  
Author(s):  
Deirdre Ahern
Keyword(s):  
Business Models ◽  
Critical Mass ◽  
Systematic Evaluation ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
Left Behind ◽  
New Business ◽  
Machine Learning Applications ◽  
The Eu

AbstractWith transformative evolution involving crypto-assets, machine learning applications and data-driven finance models, complex regulatory and policy issues are emerging. Inadequate frameworks in FinTech markets create regulatory friction and regulatory fragmentation. These limitations continue to feature when piecemeal regulatory transition occurs. The danger of EU Member States being left behind in the FinTech innovation race if the regulatory landscape is cumbersome or incomplete for new business models is real. Regulatory lag and regulatory friction also act as a ‘disenabler’ for ease of cross-border FinTech trade in the EU. This article critically engages with the manner in which the regulatory sandbox has rapidly gained critical mass in Member States as a valuable adaptive measure supporting a route to market for FinTech entrepreneurs. Against the backdrop of the European Commission’s Digital Finance Strategy, the article further advances scholarship on FinTech in the EU by probing the EU’s resulting regulatory dilemma, undertaking a systematic evaluation of the continuum of complex policy options available to the European Union in response to the spreading regulatory sandbox phenomenon.

Front-of-pack nutrition labelling in the European Union: a behavioural, legal and political analysis

2021 ◽  
pp. 1-24
Author(s):  
Vincent DELHOMME
Keyword(s):  
European Union ◽  
Dietary Habits ◽  
Legal Framework ◽  
The European Union ◽  
Present Contribution ◽  
Eu Member States ◽  
Nutrition Labelling ◽  
Political Analysis ◽  
Legislative Proposal ◽  
The Eu

Amidst a growing interest from European Union (EU) Member States, the European Commission recently announced that it would put forward a legislative proposal for the adoption of a harmonised and mandatory front-of-pack nutrition labelling scheme at the EU level. The present contribution discusses the implications of such an adoption, taking a behavioural, legal and policy angle. It introduces first the concept of front-of-pack nutrition labelling and the existing evidence regarding its effects on consumer behaviour and dietary habits. It then presents the legal framework currently applicable to (front-of-pack) nutrition labelling in the EU and discusses some of the main political and practical aspects involved with the development of a common EU front-of-pack label.

The Capital Market Authority Effectiveness in the Regulation of Financial Markets perspectives from the financial sector actors

2012 ◽  
Vol 02 (11) ◽  
pp. 15-24
Author(s):  
Charles Kombo Okioga
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Markets ◽  
Capital Market ◽  
Financial Regulation ◽  
International Standards ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Market Participants ◽  
New Business

Capital Market Authority in Kenya is in a development phase in order to be effective in the regulation of the financial markets. The market participants and the regulators are increasingly adopting international standards in order to make the capital markets in sync with those of developed markets. New products are being introduced and new business lines are being established. The Capital Markets Authority (Regulator) is constantly reviewing existing regulations and recommending changes to regulate the market properly. Business lines and activities are being harmonized by market participants to provide a one stop solution in order to meet the financial and securities services needs of the investors. The convergence of business lines and activities of market intermediaries gives rise to the diversity of a firm’s business operations to meet multiplicity of regulations that its activities are subject to. The methodology used in this study was designed to examine the relationship between capital markets Authority effective regulation and the performance of the financial markets. The study used correlation design, the study population consisted of 30 employees in financial institutions regulated by Capital Markets Authority and 80 investors. The study found out that effective financial market regulation has a significant relationship with the financial market performance indicated by (r=0.571, p<0.01) and (r=0.716, p≤0.01, the study recommended a further research on the factors that hinder effective financial regulation by the Capital Markets Authority.

scholarly journals critical analysis of the job instability in platform economy

2021 ◽  
Vol 11 (2) ◽  
pp. 122-144
Author(s):  
Rocío Gallego Losada
Keyword(s):  
Business Models ◽  
Pension System ◽  
Protective Action ◽  
Legal Framework ◽  
Social Rights ◽  
Public Pension System ◽  
New Business ◽  
Labour Legislation ◽  
Job Instability ◽  
Platform Economy

This article reflects on the vulnerability of the new digital platform workers regarding their social rights, a highly controversial issue at the doctrinal and jurisprudential levels. Firstly, we analyse the greater job instability and lack of protection experienced by the workers in this type of platforms, and the labour legal framework that derives from these new business models. In this sense, the current doctrine can be grouped into two positions: a first one which defends that these workers should be considered employees and, therefore, remain under the umbrella of the general labour legislation; and a second one, that proposes a legal transformation to include these special workers. Secondly, we analyse the effects derived from the growing development of the platform economy for the Spanish Social Security system. This analysis focuses both on the effects of the protective action of the welfare state for their workers, as well as on its impact on the financing of the public pension system. The article draws a series of final conclusions warning about the possible crash of the fundamental social rights of platform workers.

scholarly journals Digitalization of Financial Services in Albania Under Restricted Measures Covid-19

2020 ◽  
Vol 3 (2) ◽  
pp. 17
Author(s):  
Rezana Balla
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Legal Framework ◽  
Financial Industry ◽  
Technology Innovations ◽  
Markets And Institutions ◽  
New Business ◽  
Job Challenges ◽  
Digital Transactions ◽  
Financial Technology

Under the restricted measures due to the global pandemic Covid-19, like all other services, financial services had difficulties in performing their financial activities. These difficulties are stronger at countries where financial services are denied for a long time. Financial services denial is an issue that has affected not only Albania but small Balkan countries as well. The reasons for this denial are many, but among them we can distinguish the lack of credit experience, as one of the common reasons to be excluded in these countries from the development of the financial sector. Currently, one of the reasons for the financial denial is the emergency created by Covid-19, where physical distancing and other measures taken by governments to restrict movement and services make financial service impossible. Thus, one of the most effective ways to perform financial services remotely is financial technology. Financial technology refers to the possibilities of financial innovation through technology that can result in new business models, applications, processes, or products with an effectiveness related to financial markets and institutions and the provision of financial services. This paper aims to present the challenges of the legal framework and regulatory institutions, to provide recommendations for its improvement, to enable the development of financial technology in the financial market in Albania. The paper address issues such as the Bank of Albania's consideration on the Directive (EU) 2015/2366 On Payment Services (PSD II). What benefits or challenges would its implementation bring? How is the financial industry projected after the implementation of PSD II? What are the biggest job challenges with payment institutions that have not been to the market before or that bring technology innovations? The paper addresses the issue of money laundering through online digital transactions as well.

scholarly journals Legal Regulation of Ensuring Nuclear Safety and Security in Ukraine on the Way to European Integration

2020 ◽  
Vol 9 (1) ◽  
pp. 406
Author(s):  
Sergiy Dubchak ◽  
Valentyna Goshovska ◽  
Volodymyr Goshovskyi ◽  
Oleksandr Svetlychny ◽  
Olena Gulac
Keyword(s):  
European Integration ◽  
Legal Framework ◽  
Legal Regulation ◽  
Nuclear Safety ◽  
Nuclear Facilities ◽  
Energy Agency ◽  
Member States ◽  
Eu Member States ◽  
The Eu ◽  
The Way

The article is devoted to the analysis of legal regulation of the sphere of nuclear safety and security of Ukraine on the way to European integration. The authors drew attention to the importance of Ukraine achieving the necessary level of and nuclear sefaty and security adopted in the EU member states. The emphasis was placed on the fact that the prospects for fulfilling national obligations in the field of nuclear safety in accordance with European standards directly depend on solving the problems of ensuring the functioning of nuclear facilities, the physical protection of nuclear materials and installations as well as radioactive waste management. The main directions of ensuring the nuclear safety and secutiry in the world within the international law are considered. The role and activities of the International Atomic Energy Agency (IAEA) in setting up a regulatory framework for nuclear safety and security are analyzed. The international legal framework for nuclear safety and security was discused.The legislative basis for nuclear safety and secutiry in the EU IS characterized. The issue of legal norms unification in the field of nuclear safety regulation of EU member states was considered. The principles of legal regulation of nuclear a safety and security in Ukraine are characterized. Key words: nuclear safety, nuclear security, public administration of nuclear safety and security, legal regulation of nuclear safety and security, European integration, sustainable development in the field of ensuring nuclear safety and security. UDC 35:574:339.9:349.6        JEL Classification: K 23, K 32, K 33,  Q 5

The EU Response to Criminal Misuse of Cryptocurrencies: The Young, already Outdated 5th Anti-Money Laundering Directive

2020 ◽  
Vol 28 (3) ◽  
pp. 217-251
Author(s):  
Valentina Covolo
Keyword(s):  
Money Laundering ◽  
Business Models ◽  
International Standards ◽  
Present Contribution ◽  
The Core ◽  
Cross Border ◽  
The Us ◽  
New Business ◽  
New Business Models ◽  
The Eu

Abstract Combatting criminal misuse of cryptocurrencies was at the core of the fatf agenda under the US Presidency, culminating in June 2019 with the thorough extension of international standards against money laundering over virtual assets’ markets. This echoed the first legislative measure regulating virtual currencies adopted by the EU a year before. Directive 2018/843, better known as the 5th Anti-Money Laundering Directive, fails however to address key technological breakthroughs and new business models, which continuously make the ever-growing and fast-paced crypto economy evolve. Against this background, the present contribution investigates shortfalls and challenges that lay ahead in the light of the new fatf Recommendations. It ultimately argues that the preventive anti-money laundering measures cannot dispense with the establishment of a cross-border integrated supervisory and enforcement system.

5. The legal framework

2021 ◽  
pp. 48-54
Author(s):  
Ariel Ezrachi
Keyword(s):  
Mergers And Acquisitions ◽  
Competition Law ◽  
Legal Framework ◽  
Monopoly Power ◽  
Antitrust Law ◽  
Eu Member States ◽  
Eu Competition Law ◽  
The Us ◽  
Restraint Of Trade ◽  
The Eu

‘The legal framework’ outlines the key competition provisions currently in the US and EU. Like in most other jurisdictions, EU and US laws include competition provisions that are used to address antitrust violations such as anti-competitive agreements or abuse of monopoly power. They also include laws dealing with proposed mergers and acquisitions. The US Antitrust Law prohibits contracts and agreements between two or more individuals or entities in restraint of trade or commerce. Meanwhile, EU competition law prohibits agreements between ‘undertakings’ that have, as their object or effect, the prevention, restriction, or distortion of competition, and affect trade between the EU member states.

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