On 22 April 2024, the Financial Conduct Authority (FCA) published a Feedback Statement on the potential competition impacts from data asymmetry between Big Tech firms and firms in financial services. On the same day, Nikhil Rathi, the FCA’s Chief Executive, delivered a speech at the Digital Regulation Cooperation Forum on ‘Navigating the UK’s Digital Regulation Landscape’.
Ferdisha Snagg
European Supervisory Authorities Publish Report on BigTech firms in EU Financial Services
On 1 February 2024, the European Supervisory Authorities (ESAs) published a report on a 2023 stocktaking of direct financial services offered by BigTechs[1] in the EU (the Report).
The Report highlights certain characteristics of BigTech firms, in particular various types of inter-dependencies between BigTechs’ non-financial and financial services offerings, and identifies opportunities and risks flowing from these inter-dependencies. It also records national competent authorities’ supervisory and regulatory observations as well as some initial suggestions how these could be addressed. Lastly, it states that, as a next step, the ESAs will establish a “multi-faceted data matrix” to enhance their monitoring of BigTech firms.
FCA seeks input on data asymmetry between Big Tech and financial services firms
On 24 November 2023, the Financial Conduct Authority (FCA) published a Call for Input on the potential competition impacts arising from the data asymmetry between Big Tech firms and firms in financial services. The Call for Input follows the FCA’s October 2022 Discussion Paper regarding the potential competition impacts of Big Tech entry and expansion in retail financial services, and its July 2023 Feedback Statement summarising the responses to the Discussion Paper. [1]
Big Tech and Retail Financial Services: FCA’s Latest Insights and Policy Initiatives
On 12 July, 2023, the Financial Conduct Authority (FCA) published a Feedback Statement summarising responses to its October 2022 Discussion Paper entitled “The potential competition impacts of Big Tech entry and expansion in retail financial services.”[1]