Outside the US, few fintechs achieve unicorn status without international growth; navigating regulatory licensing is key to unlocking new markets and achieving billion-dollar valuations.

In FintechXpndr’s latest blog post, we explore how neo-banks use licensing to (1) Expand their Total Addressable Market; (2) Build investor trust by showcasing regulatory competence; (3) Drive product and service innovation.

Today’s £62 million fine imposed on Citi by the PRA and FCA underscores the real cost of inadequate risk management systems. Unfortunately, this is not an isolated incident; significant fines have been levied on most major financial institutions for similar failings in risk management and controls.

A recent poll revealed that only 1% of firms have completed their annual Consumer Duty Board report. With the deadline of July 31, 2024, fast approaching, it's crucial for firms to expedite their efforts to avoid non-compliance and potential FCA sanctions.

The proposed market abuse rules for crypto-assets under MiCA are based heavily on the existing TradFi rules set out in MAR. Potential challenges facing crypto firms operating in the EU include: the expansive scope of Persons Professionally Arranging or Executing Transactions (PPAETs); prohibition of certain business practices (e.g. MEV); and difficulty attributing responsibility for STOR submission.

The FCA has written to CEOs of Annex 1 firms setting out findings from recent assessments of how firms are complying with money laundering regulations

Singapore launched its first Model Governance Framework on traditional AI in 2019, later revising it in 2020. Updating the framework again is necessary amid emerging concerns and threat scenarios surrounding the use and development of generative AI. The main aim of the new Framework is to promote public understanding and trust in technologies enabling end-users to access generative AI confidently and safely.

As the UK Car Finance Discretionary Commission Scandal unfolds, Car Dealers, Car Finance Firms and Motor Finance Credit Brokers find themselves at the epicentre of potentially substantial financial exposure.

This guide helps Car Dealers and Car Finance Firms understand the background to the Car Finance Discretionary Commission Scandal and what they need to do to mitigate the impact on their business.

FintechXpndr helps fintechs expand internationally. For firms expanding overseas, we offer a one-stop shop for strategy, regulatory licensing, company incorporation, bank account opening, accounting and tax, and company directors. For regulated firms already operating in one of our core jurisdictions, we offer an outsourced compliance and risk management service, enabling firms to focus on their core business, while we take care of the rest.

The EU’s Markets in Crypto Assets (MiCA) regulation paves the way for the rapid growth of the European market in crypto and digital assets.

While MiCA applies to a broad spectrum of market participants, existing investment firms established in the EU hold a distinct advantage when it comes to compliance. This blog explains why.

Now is the ideal time for successful FinTechs to take the global stage – Braithwate explains why.

It may seem counter-intuitive, but the current FinTech market downturn presents an ideal opportunity for astute FinTechs to expand their market presence.

Public offering and issuance of crypto-assets under MiCA

On 8th October 2023, the UK's Financial Promotion (Amendment) Order 2023 comes into effect, transforming the advertising and promotion of cryptoassets in the UK

ESMA has opened its first round of consultation on technical standards under the Markets in Crypto-Assets (MiCA) Regulation, seeking feedback from industry practitioners by September 20, 2023. Topics covered include: CASP authorisation process, conflicts of interest, complaints handling and change of control.

Braithwate’s analysis of the FCA’s CP23/13 on Stronger Protections for Borrowers in Financial Difficulty.

These new rules represent a ratcheting up of the FCA’s expectations of how firms support customers in financial difficulty, adding another layer to firms’ Consumer Duty initiatives to enhance their arrears and vulnerable customer processes.

This blog reviews the key considerations for a consumer credit firm.

The SEC provided additional guidance on how its proposed changes to the definition of an “Exchange” will apply to crypto and DeFi;

The House Committee on Financial Services published draft legislation for payment stablecoin issuers, building on legislative proposals which have circulated over the past year; and

The EU’s Markets in Crypto-Assets (MiCA) regulation reaches the final stage of the legislative journey and will be approved by the Parliament this coming week.

This blog provides a summary of each of these initiatives and concludes with Braithwate’s perspective on what this means for the future of digital assets and crypto businesses.

Braithwate analyses the UK Government’s White Paper on "A pro-innovation approach to AI regulation", identifying sharp contrasts with the EU AI Act: The UK intends to implement a more "flexible" principles-based approach, informed by sectoral regulators’ domain expertise

Heads up for all Payment Services and E-Money firms: the Financial Conduct Authority is concerned about governance and risk management.

Braithwate analyses the FCA’s review of firms’ implementation of the Investment Firms Prudential Regime (IFPR) and highlights steps firms should take to avoid penalty capital buffers.

The use of AI in finance is under increased regulatory scrutiny. This article outlines key opportunities and risks associated with AI across EU securities markets, specifically in the areas of asset management, trading and advisory services.

If you are working on an AI-driven process or product and not sure how AI risks may impact your firm, please 👋 reach out for an initial consultation. At Braithwate and Holistic AI we have proven tools and methodologies to help you adopt AI with confidence.