Page 23 - August 2018 Disruption Report Flip Book

REFORMING THE REGULATORY MOAT JAUNGUUASRTY 2018
Wealth Management and Digital Financial Planning
• Harmonizing the current patchwork of regulatory authority over wealth management and financial planning, which makes these services more costly and potentially presents unnecessary barriers to the development of digital financial planning services.
Facilitating Experimentation
The United States must preserve its leading position in financial innovation and must engage in agile and effective regulation for a 21st century economy. As the rest of the world takes measures to enable innovative financial products and services, the United States risks losing out by failing to provide regulatory clarity and remove unnecessary barriers to innovation. The report recommends:
• Working with federal and state regulators to design a system functioning like a “regulatory sandbox” that would establish a unified regulatory approach and facilitate coordination and meaningful experimentation with innovative financial services.
• Reforming procurement rules to allow financial regulators to use other transaction authority for research and development and proof of concept technology projects.
• Strengthening regulator engagement efforts with industry and the establishment of clear points of contact for industry and consumer outreach.
• Promoting the alignment of actions of international organizations with U.S. national interests and the domestic priorities of U.S. regulatory authorities.
...The United States is the global leader in technological innovation. The pace of technological development in financial services has increased exponentially, offering potential benefits to the U.S. economy. Treasury encourages all financial regulators to stay abreast of developments
in technology and to properly tailor regulations in a manner that does not constrain innovation. Regulators must be more agile than in the past in order to fulfill their statutory responsibilities without creating unnecessary barriers to innovation... (A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation, Treasury Secretary Steven T. Munchin and Craig S. Phillips, July 2018)
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