On 29 June 2020, the European Supervisory Authorities (ESAs) published their respective responses to the European Commission's consultation on a new EU Digital Finance Strategy.
The European Securities and Markets Authority (ESMA) focused on the need to ensure that the new EU regulatory framework is technology agnostic to maintain flexibility and to support innovation. ESMA also highlights the risks and benefits from the digitalisation of the financial sector.
ESMA's covering letter can be found here: https://www.esma.europa.eu/sites/default/files/library/esma50-164-3475_letter_chair_dfs_response.pdf
ESMA's response can be found here: https://www.esma.europa.eu/sites/default/files/library/esma50-164-3463_esma_dfs_response.pdf
The European Banking Authority (EBA) stressed the importance of digital financial services being able to operate in the Single Market to allow for the scaling up of cross-border services and ensure consistent and effective risk mitigation. The EBA highlights the central importance of comprehensive and ongoing monitoring of the application of innovative technologies in the financial sector as well as knowledge sharing, for example, through the EBA’s FinTech Knowledge Hub. Finally, the EBA emphasises the potential of FinTech in facilitating structural changes in the financial sector, including by supporting new business models (for example, digital platforms).
The EBA's covering letter can be found here: https://eba.europa.eu/sites/default/documents/files/document_library/About%20Us/Missions%20and%20tasks/Correspondence%20with%20EU%20institutions/2020/886667/2020%2006%2026%20Letter%20to%20EVP%20Dombrovskis%20re%20DFS%20-%20Publication.pdf
The EBA's response can be found here: https://eba.europa.eu/sites/default/documents/files/document_library/About%20Us/Missions%20and%20tasks/Correspondence%20with%20EU%20institutions/2020/886668/EBA%20Response%20to%20EC%20DFS%20consultation%20260620.pdf
The European Insurance and Occupational Pensions Authority (EIOPA), in line with ESMA, urges the approach to allow for innovation to thrive whilst maintaining financial stability and always protecting consumers. Interestingly, EIOPA specifically talks about the need for the fair, ethical and transparent use of data, a theme which is gaining a lot of momentum in recent years.
EIOPA's response can be found here: https://www.eiopa.europa.eu/sites/default/files/publications/submissions/eiopa-response-to-digital-finance-strategy-consultation.pdf