Fintech enquiries on the rise for the regulator
The number of Fintech enquiries received by the Jersey Financial Services Commission (JFSC) has more than tripled in the past three years, according to figures released today in the regulator’s first Fintech and Innovation Report.
Since 2016 the JFSC has helped more than 100 businesses with queries about how to develop innovation in financial services and how regulation applies to them. Engaging with the regulator at this key, early stage can lead to new businesses being granted licences.
The majority of enquiries have focused on crypto-currencies, initial coin offerings and security token offerings, but other enquiries are also on the increase. Last year alone, the JFSC engaged with 52 businesses, with 30% of them asking about trading platforms and exchanges.
JFSC Director General, Martin Moloney, partly attributes the increased interest in Fintech to the regulator’s proactive approach to working with local agencies and innovators:
“The work we are doing in the Fintech space really gained momentum in 2019 and will continue to do so in 2020. We believe that Jersey companies increasingly understand that improving their technology enables them to meet their regulatory requirements, while enhancing their customers’ experience. Equally we are now proactively engaging with businesses at an early stage and we are working closely with Government, Digital Jersey and Jersey Finance on emerging technologies. For example, our Fintech lead now bases herself at the Digital Jersey Hub one day a month offering on-hand informal support to start-up businesses.”
As well as giving details of the types of Fintech enquiries received, the JFSC’s report also outlines its plans for innovation in 2020 and beyond. Activities include exploring new ways of working with the finance industry on new products, building relationships on and off-island, and offering dedicated support at the Digital Jersey Hub, with representatives from the Companies Registry helping with business start-up enquiries.
The JFSC’s Innovation Hub is a direct and dedicated point of contact for both start-up and established businesses, providing help and guidance to Jersey businesses which want to understand how Jersey’s regulatory framework applies to emerging technologies.