Consultation paper – FinTech and Blockchain Law Watch

Australia: Payments Reform – Generational Change Coming

Jun 19 2023

Earlier this month the government released a raft of documents on the future of payments regulation in Australia. These documents are:

A Strategic Plan for Australia’s Payments System – “Strategic Plan” (available at: https://treasury.gov.au/publication/p2023-404960)
the Payments System Modernisation (Licensing: Defining Payment Functions) – “Consultation Paper” (available at: https://treasury.gov.au/consultation/c2023-403207)
the Reforms to the Payments Systems (Regulation) Act 1998 Consultation Paper – “PSRA Consultation” (available at: https://treasury.gov.au/consultation/c2023-403206)

In this Blog Post we take a deeper look at some of the key proposals from the Consultation Papers and what they will mean for operators in the payments ecosystem.

Monetary Authority of Singapore – consultation on proposed changes to payments regulatory framework

Aug 31 2016

By Nicholas Hanna

The Monetary Authority of Singapore (MAS), which is the regulatory authority overseeing financial matters in Singapore, issued a consultation paper on 25 August 2016 setting out proposed changes to the payments regulatory framework in Singapore together with the proposed establishment of a National Payments Council.

In a response to the lines between payments and remittance being blurred by technical innovation and the increasing number of payment providers that do not fit neatly into either of these categories, MAS is proposing to consolidate its regulation of both payments and remittance into a single framework. Currently, such services are split across the Payment Systems (Oversight) Act and the Money-changing and Remittance Businesses Act.

MAS has confirmed that the new single framework will provide for licensing, regulation and supervision of all payment services, including stored value facility holders, remittance companies and virtual currency intermediaries. The new framework is likely to be applied on an activity basis with entities being required to apply for a single licence to undertake several payment activities. Read More

UK Government opens consultation on draft innovation plan for financial services

Apr 29 2016

By Jonathan Lawrence

According to the UK Treasury’s recently released draft innovation plan for financial services, the Financial Conduct Authority (“FCA”) “intends to broaden engagement with large incumbent institutions”. “To facilitate increased dialogue the FCA plans to proactively engage with large incumbents to ensure their potential for consumer-friendly innovation is not being held back by regulatory considerations,” the Treasury said. “In particular, it will seek out opportunities to pilot research on new initiatives.” The regulator is recognising that innovation does not just happen within the start-up environment and that it is within its power to support a broader appetite among the traditional players in the market to use the latest technology to innovate, whether on their own or in collaboration with others.

In March 2016 the FCA and Australia’s Securities and Investments Commission (“ASIC”) signed a deal to make it easier for financial technology firms based in each country to win authorisations to operate in the other country. The Treasury said the FCA can help “put UK-based innovators in touch with the right regulators when they look to start doing business in other regulatory jurisdictions” and is “ready to help non-UK innovators interested in entering the UK market”. The FCA wants to put more “co-operation agreements” in place “with key regulators”, the Treasury said.

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