Erhvervsudvalget 2019-20
ERU Alm.del Bilag 341
Offentligt
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Valdis Dombrovskis
Executive Vice-President for An Economy that Works for People and
Commissioner for Financial Services, Financial Stability and Capital
Markets Union
European Commission
MINISTER FOR INDUSTRY,
BUSINESS AND FINANCIAL
AFFAIRS
Dear Executive Vice-President Valdis Dombrovskis
It is with great pleasure that I send you the Danish government response to
the European Commission’s
consultation on the coming digital finance
strategy/FinTech action plan. As we continue to move further into the dig-
ital era, this consultation raises many significant questions and aspects that
we find of importance.
As a first comment we would like to highlight that this strategy will con-
tribute in providing further impetus in the shaping of our Single Digital
Market easing access for citizens and companies alike to engage in invest-
ments, capital markets and exchange of information across EU Member
State borders.
Furthermore, we would like to stress that regardless of which direction we
take on this new strategy, it is imperative that European consumers and
investors receive sufficient protection. In this respect, the interplay between
existing financial regulation and the new digital finance strategy should be
thoroughly analysed and addressed.
We also strongly support proposals on financial education albeit the opti-
mum way to do this in practice should be further explored. This is particu-
larly important in order to ensure that consumers are able to understand the
various services being offered, who might gain access to their personal
data, and how that data might be used by companies. Financial education
can help ensure that consumers are properly guided.
Another element in the consultation at hand which we find should be of
particular attention relates to the continued entry of BigTechs into the fi-
nancial markets. It is widely expected that within a short time frame major
tech companies will start to engage with payment, investment and banking
services. While positive in its own right, we must also be aware of the many
potential risks related to this. One such risk is the creation of an un-level
playing field for regulated financial institutions, and therefore we strongly
support the principle
of ‘same
activities, same risks, same regulation’.
MINISTRY OF INDUSTRY,
BUSINESS AND FINANCIAL
AFFAIRS
Slotsholmsgade 10-12
1216 Copenhagen K
Denmark
Tlf.
+45 33 92 33 50
Fax.
+45 33 12 37 78
CVR-nr. 10092485
EAN nr. 5798000026001
[email protected]
www.em.dk
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In addition, we believe that the possibilities for mutual obligations on data
sharing requirements between tech companies and financial institutions
should be given further consideration. It will be distortive to the competi-
tion in the sector if banks, insurance and pension firms are forced to pro-
vide data, but are not given the opportunity to access multiple types of data
that can be used for innovation and development of new products them-
selves. It is important not to ease regulatory requirements for tech compa-
nies if the risks are the same as for financial companies, and thus should
be regulated in the same way.
We would also recommend that the new strategy has a clear focus on ena-
bling regulatory sandboxes and innovation hubs in the Member States
–
both of which we have highly positive experiences with in Denmark. Reg-
ulatory sandboxes in particular have enabled us to show companies regu-
latory limits while avoiding any stifling of innovation. We believe this is a
good way to hinder legal uncertainty as it presents companies with the op-
portunity to test and validate their modus operandi and would also help in
forestalling potential pitfalls as new and innovative technologies are intro-
duced to financial markets.
However, we remain adamant that it should be up to the individual Member
States to decide on the framework for their regulatory sandboxes and inno-
vation hubs. Instead of establishing a common EU sandbox, we should en-
sure a strong cooperation between Member States and facilitate cross-bor-
der exchange of best practices and results from tests in the various sand-
boxes. Any initiatives in this direction, such as with the European Forum
for Innovation Facilitators, would be supported.
Furthermore, we find that minimising regulatory uncertainty should be an-
other important focal point for the coming strategy. Any such uncertainty
discourages companies from applying technologies such as AI and block-
chain into their business models. We are of the opinion that there is a need
for guidance at EU level to address this. Utilising soft law and a range of
guiding principles rather than technology specific regulation could be a
way to achieve more clarity while at the same time ensuring that regula-
tions resulting from this strategy are technology neutral and do not hinder
innovation.
To our knowledge, legal uncertainty regarding RegTech companies also
prevent financial companies from making use of such solutions. The valid-
ity of such business models rely directly on the requirements in the finan-
cial regulation. As or if such business models become increasingly wide-
spread, a relevant discussion might be whether introducing some form of
license or registration could add value.
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Moreover, we find that there is an important interplay between the GDPR,
financial regulation and competition and consumer regulation in the field
of digital finance, and we believe it is essential that we obtain a common
understanding and interpretation between authorities.
Attached please find our specific replies to the consultation document. As
always, I am at your disposal should you have any questions or comments.
Yours sincerely,
Simon Kollerup