Securities Law Daily provides daily coverage of developments in the regulation of federal, state, and international securities and futures trading, with objective coverage of the...
Nov. 14 — The Securities and Exchange Commission is seeking to regulate financial technology firms that are moving into traditional lending, payment processing and capital formation, agency commissioners said Nov. 14.
“I believe the commission should take the lead regulatory role in the fintech space,” Commissioner Michael Piwowar said at a fintech forum at the agency’s Washington headquarters.
Many fintech firms are already registered with the SEC in variety of capacities, he said, and others give investment advice or make it easier for traders to clear and settle their transactions.
SEC action in the fintech arena could bump up against the Office of the Comptroller of the Currency’s plans. The OCC is mulling a system to issue national charters to financial technology companies and has been taking some preliminary regulatory steps that could allow it to move forward by the end of the year.
SEC members, though, say their agency has a role to play in regulating marketplace lending and firms that use distributed ledgers, like blockchain, to facilitate financial transactions.
The SEC can ensure that marketplace lending investors are given enough information to make good investment decisions, SEC Chairman Mary Jo White said at the same forum. “As investors are drawn into potentially higher yielding but riskier marketplace loans, information about the borrowers’ ability to repay the loan underlying the investment is obviously critical,” she said.
The agency is also examining the quality of disclosures that automated investment advisers, known as robo-advisers, give to their clients.
The SEC has 11 regional offices, which Piwowar said could act as “intake centers” for fintech startups seeking guidance in navigating the securities regulatory regime.
White also noted the agency has created an internal fintech working group.
To contact the reporter on this story: Rob Tricchinelli in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at PDiamond@bna.com
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)