Jacqui Hatfield and Melanie Shone have recently published an article in Finance Monthly, examining the performance of the FCA’s Project Innovate.

The authors caution that “any new rules, specific to a particular technology, may quickly become obsolete as the pace of development in the FinTech space outstrips the speed of regulatory response.  It is therefore essential that regulatory rules are as technologically neutral and forward thinking as possible – and that these are combined with proactive industry engagement and appropriate practical guidance from the FCA to provide much-needed regulatory certainty and clarity to the industry”.

The authors foresee a bumpy road ahead as industry participant and regulators navigate the potential conflicts between regulatory aims and disruptive FinTech innovation.