Financial legislation focuses on the stability and integrity of the financial system. That stability was severely tested by the credit crisis. It showed that stricter capital requirements were necessary. Otherwise, the collapse of one bank would have too great an impact on the stability of other banks. Since the credit crisis, both entry requirements and supervision have become considerably stricter.
The integrity of the financial system is also being tested. In the period of 2008-2018, European regulators imposed record fines on market participants who did not have their anti-money laundering processes in order. In the Netherlands, it was ING that had to accept a fine of 775 million in 2018. Now it seems to be ABN’s turn as well. Rightly so, because banks are the gatekeepers of the financial system. Without their cooperation, money from international, organised crime cannot enter the market.
In many cases providers of financial services need a license. Fintech parties must therefore be aware of the relevant legislation. This obviously applies to Fintech parties that want to apply for a licence themselves. But it applies just as much when Fintech parties supply technology that supports the processes of market parties.
That legislation is complex and does not always keep up with developments in the market. That is difficult for innovative parties and requires specialist knowledge.
An important subject is PSD2. The implementation of this European directive makes it possible to offer two new payment services throughout Europe: the Payment Initiation Service and the Account Information Service. We have known the first one in the Netherlands for some time; it is the service that iDeal provides. The Account Information Service is a service that enables consumers to give third parties access to their transaction data so that they can base value added services on it. A digital household checkbook is just the beginning.
SOLV’s lawyers have the specialist knowledge needed to advise and litigate on these complex issues, and have been serving the Fintech market for many years.