October 27, 2020

Volume X, Number 301

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October 27, 2020

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October 26, 2020

Subscribe to Latest Legal News and Analysis

ECON Announces Implementation of Draft Report on Digital Finance and FinTech

On September 11, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a press release announcing the adoption of its draft report on Digital Finance.

The draft report (PE650.539v01-00), which was prepared in June, is non-binding in effect and sets out recommendations made in response to the European Commission’s Digital Finance strategy consultation. The press release welcomes the Commission’s commitment to finalizing a FinTech action plan by Q3 2020, with ECON also emphasizing European Union (EU) measures are to ensure all market participants have space to innovate, be proportional and technologically neutral and risk-based, whilst allowing for high levels of consumer and investor protection. The report further calls for the development of a common EU model to be utilized to set standards by the European Supervisory Authorities (ESAs) and international co-operation.

ECON highlights issues and recommendations within the report, including:

  • Cryptoassets: Targeted legislation changes to fill regulatory gaps, comprehensive pan-EU open-ended taxonomy for new products, common monitoring and supervisory framework.

  • Cyber resilience: Legislative changes focusing on modernization, compliance with international standards and operational resilience testing, to information and communications technology ICT and cybersecurity requirements for the EU financial sector.

  • Data: Enactment of EU legislation on privacy and data protection to monitor cross-border data flows, including to and from third countries. (However, the press release notes that the free flow of data within the EU is a necessity in the scaling-up of innovative finance).

The procedure file for the report indicates it will be under consideration of the European Parliament in its plenary session commencing between October 5 and October 8.

The ECON’s press release is available here.

The ECON’s Draft Report is available here

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 262
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About this Author

Carolyn H. Jackson, International Attorney, Katten Muchin law firm
Partner

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws...

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring and documentation relating to OTC derivatives and structured products.

Prior to joining Katten, Nathaniel was a member of the US Regulatory and the Derivatives and Structured Finance practices at Allen & Overy LLP.

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

44-0-20-7776-7666
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