EESC welcomes FinTech Action Plan with some reservations

The measures proposed by the European Commission concerning the development of technology for the financial sector (FinTech) in Europe must be adjusted so as to balance market stimulation and the security and stability of the financial and economic system. In the EESC's view, the proposed Action Plan is a good basis but additional measures are needed to tap the full potential of FinTech and ensure certainty, protection and equal market conditions for all market participants.

The EESC believes that FinTech players should be subject to the same rules as the financial sector, particularly as regards resilience, cyber security and supervision, and that rules to ensure uniform development of FinTech in the EU are needed. The Commission should clarify the responsibility of companies offering cloud services as regards the protection of personal data they host, and identify possible rules.

However, the EESC supports the Commission's Action Plan, as it could contribute to the completion of the Capital Markets Union, the EMU and the Digital Single Market. The EESC also welcomes the Commission's proposals for an enabling framework for crowdfunding as providing new opportunities and more certainty and protection for all market participants. But at least in the initial stages, there should be an even stronger focus on risk aspects associated with crowdfunding operations and markets in order to better identify them or mitigate them where possible, and to ensure certainty and protection for all concerned parties.

In addition, the issues of money laundering, terrorism financing and taxation related to crowdfunding need to be better addressed and provisions to regularly monitor and assess the proposed EU regime should be introduced. (jk)