Fintech Compliance and regulation


Compliance and regulation in fintech include Board of directors regulatory structure

and the implications of the clauses in the agreements, its rights and obligations, the impact of financial and Capital
Rounds which will entail a specific Support to the business where necessary.

With that said, when it comes to regulated entities that want to operate under
certain regulations to perform transferring funds, payments, getting funds from
the public, advertising deposits or high returns, as many

Fintech companies do,
must take a deep dive into fintech regulation, mainly at PSD2 regulation in
Europe, and local regulation which will be ruled by the Bank of each country.

Since 2015 the main goal for banks and fintech was to find a way and a path to
work together and share best practices and data, so they could make better
decisions.  In 2015 they(UK Banks and Fintech´s) created the Open Banking
working group, where the aim was to be able to share customer data between
fintech and banks and benefit all of the parties, and that was the beginning of
PSD2 pillars.

The European Banking Authority (EBA)made a huge step as some gray areas
which were reserved only for banks were from then on allowed for private
fintechs and that involved a new era for compliance in fintech.
The 2 main goals of these new regulated areas in payments market were
focused in
 Consumer protection and its security. 
 Boost competition, innovation and improve the development of new
payment ways.
These 2 main topics had been raised as the heart of fintech compliance and
business, by increasing consumer protection, fintech regulation included
stronger compliance requirements for online transactions, introducing initiatives
such as stronger authentication which meant empowering customer safeness
and decisions.
In that sense, the 2018 PSD2 regulation opened a wide range of
opportunities for fintechs.
What type of operations can be performed under the PSD2 umbrella?

Under the PSD2 European regulation, several legal figures have been created,
PSD2 has enabled several fintech figures that can operate in the market taking
banking market share,


Silvia Calls

Fintech lawyer