Page 38 - BIPAR Annual Report 2020_EN

to build European data spaces, for instance financial services, FinTech-InsurTech Digital finance is the term used to describe the impact roundtable discussions at EU and national level. This is an
industrial manufacturing, the green deal, mobility or health. of new technologies on the financial services industry. It occasion for the Commission to gather together stakeholders
The Commission is also planning to present later in 2020 a Background includes a variety of products, applications, processes and in digital finance from across the EU, exchange experiences
Digital Services Act to establish clear rules for all businesses to business models that have transformed the traditional way and create awareness on this commission consultation.
access the Single Market, to strengthen the responsibility of In March 2018, the European Commission published an Action of providing banking and financial services. BIPAR has been following the DG FISMA roundtables on
online platforms and to protect fundamental rights. Plan on FinTech: “For a more competitive and innovative digital finance that took place between March and May
The White Paper on AI is now open for public consultation until European financial sector”. The Action Plan contains different Digital Finance Strategy 2020 2020. Some of these roundtables focused on: a technology-
14 June 2020. BIPAR has launched an internal consultation actions around three main objectives: The European Commission launched on 3 April 2020 a neutral and innovation-friendly regulatory framework, open
amongst its member-associations and based on the feedback consultation on a new Digital Finance Strategy for Europe/ finance/open insurance, crypto-assets, digital operational
collected submitted its contribution to the Commission. 1. Enabling innovative business models to reach EU Fintech Action Plan. This consultation seeks views on the resilience framework for financial services and digital
scale (actions regarding licensing requirements, possible measures needed to further enable innovative sustainable finance
Liability and AI standardization and innovation facilitators). digital financial services in the EU, while considering possible
The Report on “the safety and liability implications of Artificial 2. Supporting the uptake of technological innovation in the competition issues with BigTech companies. The consultation is open until 26 June 2020. BIPAR has
Intelligence, the Internet of Things and robotics”, which financial sector (including a review of the suitability of launched an internal consultation amongst its member-
accompanies this White Paper, analyses the relevant legal existing rules by an expert group, removing obstacles According to the Commission, « digital finance can associations and based on the feedback collected it will
framework. It identifies uncertainties as to the application to cloud services, an EU blockchain initiative, and an EU contribute in a number of ways to tackle the COVID-19 submit its contribution to the Commission. Some of the
of the product safety and liability framework with respect Fintech Lab, leveraging technology to support distribution outbreak and its consequences for citizens, businesses, key current BIPAR positions on digital finance can be
to the specific risks posed by AI systems and other digital of retail investment products across the Single Market) and the economy at large. […] digitalisation of the financial summarized as follows:
technologies. 3. Enhancing security and integrity of the financial sector sector can be expected to accelerate as a consequence of “Same risks, same rules” principle should be observed.
(cybersecurity/ cyber resilience). the pandemic. The coronavirus emergency has underscored - The regulatory framework should be technology
The Report concludes that the current product safety the importance of innovations in digital financial products neutral allowing for a level-playing field for all players and
legislation already supports an extended concept of safety The European Commission’s FinTech Action Plan mandated services, including for those who are not digital native, as service providers.
protecting against all kind of risks arising from the product EIOPA, along with the other ESAs to: during the lockdown everybody is obliged to rely on remote - Guidance and supervisory sandboxes can be
according to its use. However, provisions explicitly covering services. At the same time, as people have access to their a good way to support innovation. An issue regarding
new risks presented by the emerging digital technologies • explore the need for guidelines on outsourcing to cloud bank accounts and other financial services remotely, and sandboxes is that compliance with the rules by incumbent
could be introduced to provide more legal service providers by the first half of 2019, as financial sector employees work remotely, the digital market players should not bring them into a situation where
certainty. For example, possible amendments and operational resilience of the financial sector has becoming they are disadvantaged (in terms of innovation) compared
to the Product Liability Directive will be • conduct further analysis and identify best even more important. » to start ups, who may have more freedom because they are
examined in order to include services provided practices on innovation facilitators. not covered by the same rules.
(not only goods) and to adapt the burden of The Digital Finance consultation is structured in three - Competitions issues with BigTech companies
proof required for damage caused by the Additionally, EIOPA is currently mapping sections corresponding to the three priority areas: should be studied and it is necessary to make sure that all
operation of AI applications (fault-based vs possible barriers to InsurTech as well as the 1. Ensuring that the existing EU financial services regulatory players can compete in a fair way.
strict liability). current authorising and licensing requirements framework is fit for the digital age (looking into whether - Regarding data protection issues, it is necessary to
and is assessing how the principle of the principle of technology neutrality works). clarify how the financial data open space will fit in the GDPR
In the consultation on the White Paper on AI, proportionality is being applied in practice in the area of 2. Enabling consumers and firms to reap the opportunities and how it will be developed (e.g. data portability issue, data
the Commission asks, in addition to the targeted questions financial innovation. The mandate to ESAs also included: offered by the EU-wide Single Market for digital financial ownership issues).
for a regulatory framework for AI, whether the Product to map the existing supervisory practices across financial services (looking into any barriers/fragmentation in the
Liability Directive should be amended to better cover the sectors around ICT (Information and Communication Single Market). Next steps
risks engendered by certain AI applications. The European Technology) security and governance requirements, and a) to 3. Promoting a data-driven financial sector for the The Commission will propose in Q3 2020 a new Digital
Commission is planning to present legislative proposals on AI consider issuing guidelines aimed at supervisory convergence benefit of EU consumers and firms (looking into how Finance Strategy/FinTech Action Plan that sets out a number
in Q4 2020/Q1 2021. and enforcement of ICT risk management and mitigation to improve market transparency and access to data of areas that public policy should focus on in the coming five
As far as the work of the European Parliament is concerned, requirements in the EU financial sector and, b) if necessary, through standards). year. The Commission may also add other measures already
the EP (JURI Committee) has proposed on its own initiative a provide the Commission with technical advice on the need for announced to further support the digital transformation of
draft Report on a “Civil liability regime for Artificial Intelligence”. legislative improvements. In the framework of the consultation on Digital Finance the European economy, including new policies and strategies
Strategy, the Commission-DG FISMA- is organising online on data, artificial intelligence, platforms and cybersecurity

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