Click here to download the Fintech 2020 report, published by Getting the Deal Through.

Jurisdictions covered

The following 23 jurisdictions are covered in this report:

Austria; Belgium; China; Czech Republic; Germany; Gibraltar; Hong Kong; India; Indonesia; Ireland; Japan; Kenya; Korea; Netherlands; Singapore; South Africa; Spain; Sweden; Switzerland; Taiwan; United Arab Emirates; United Kingdom; United States.

Questions

The set of questions relating to the topic of fintech and answered by the guide for each jurisdiction covered include:

Fintech landscape and initiatives

• • What is the general state of fintech innovation in your jurisdiction?
• • Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?

Financial regulation

• • Which bodies regulate the provision of fintech products and services?
• • Which activities trigger a licensing requirement in your jurisdiction?
• • Is consumer lending regulated in your jurisdiction?
• • Are there restrictions on trading loans in the secondary market in your jurisdiction?
• • Describe the regulatory regime for collective investment schemes and whether fintech companies providing alternative finance products or services would fall within its scope.
• • Are managers of alternative investment funds regulated?
• • Describe any specific regulation of peer-to-peer or marketplace lending in your jurisdiction.
• • Describe any specific regulation of crowdfunding in your jurisdiction.
• • Describe any specific regulation of invoice trading in your jurisdiction.
• • Are payment services regulated in your jurisdiction?
• • Are there any laws or regulations introduced to promote competition that require financial institutions to make customer or product data available to third parties?
• • Do fintech companies that sell or market insurance products in your jurisdiction need to be regulated?
• • Are there any restrictions on providing credit references or credit information services in your jurisdiction?

Cross-border regulation

• • Can regulated activities be passported into your jurisdiction?
• • Can fintech companies obtain a licence to provide financial services in your jurisdiction without establishing a local presence?

Sales and marketing

• • What restrictions apply to the sales and marketing of financial services and products in your jurisdiction?

Change of control

• • Describe any rules relating to notification or consent requirements if a regulated business changes control

Financial crime

• • Are fintech companies required by law or regulation to have procedures to combat bribery or money laundering?
• • Is there regulatory or industry anti-financial crime guidance for fintech companies?

Peer-to-peer and marketplace lending

• • What are the requirements for executing loan agreements or security agreements? Is there a risk that loan agreements or security agreements entered into on a peer-to-peer or marketplace lending platform will not be enforceable?
• • What steps are required to perfect an assignment of loans originated on a peer-to-peer or marketplace lending platform? What are the implications for the purchaser if the assignment is not perfected? Is it possible to assign these loans without informing the borrower?
• • Are securitisation transactions subject to risk retention requirements?
• • Is a special purpose company used to purchase and securitise peer-to-peer or marketplace loans subject to a duty of confidentiality or data protection laws regarding information relating to the borrowers?

Artificial intelligence, distributed ledger technology and cryptoassets

• • Are there rules or regulations governing the use of artificial intelligence, including in relation to robo-advice?
• • Are there rules or regulations governing the use of distributed ledger technology or blockchains?
• • Are there rules or regulations governing (whether specifically or indirectly) the use of cryptoassets, including digital currencies, digital wallets and e-money?
• • Are there rules or regulations governing the operation of digital currency exchanges or brokerages?
• • Are there rules or regulations governing initial coin offerings (ICOs) or token generation events?

Data protection and cybersecurity

• • What rules and regulations govern the processing and transfer (domestic and cross-border) of data relating to fintech products and services?
• • What cybersecurity regulations or standards apply to fintech businesses?

Outsourcing and cloud computing

• • Are there legal requirements or regulatory guidance with respect to the outsourcing by a financial services company of a material aspect of its business?
• • Are there legal requirements or regulatory guidance with respect to the use of cloud computing in the financial services industry?

Intellectual property rights

• • Which intellectual property rights are available to protect software, and how do you obtain those rights?
• • Who owns new intellectual property developed by an employee during the course of employment? Do the same rules apply to new intellectual property developed by contractors or consultants?
• • Are there any restrictions on a joint owner of intellectual property’s right to use, license, charge or assign its right in intellectual property?
• • How are trade secrets protected? Are trade secrets kept confidential during court proceedings?
• • What intellectual property rights are available to protect branding and how do you obtain those rights? How can fintech businesses ensure they do not infringe existing brands?
• • What remedies are available to individuals or companies whose intellectual property rights have been infringed?

Competition

• • Are there any specific competition issues that exist with respect to fintech companies in your jurisdiction?

Tax

• • Are there any tax incentives available for fintech companies and investors to encourage innovation and investment in the fintech sector in your jurisdiction?
• • Are there any new or proposed tax laws or guidance that could significantly increase tax or administrative costs for fintech companies in your jurisdiction?

Immigration

• • What immigration schemes are available for fintech businesses to recruit skilled staff from abroad? Are there any special regimes specific to the technology or financial sectors?