In response to a speech by the Financial Conduct Authority regarding tech companies in finance, the Computer & Communications Industry Association (CCIA) issued a statement through its Senior Director, Matt Sinclair, expressing concerns about the regulator's stance.
Sinclair criticized the FCA's focus on the potential impact of data held by technology firms, noting that these firms have not been linked to significant harms in the financial services sector. He stated, "With so many actual barriers to entry and real consumer harms in financial services, it is striking that the FCA is speculating about the impact of data held by technology firms which it acknowledges have not created significant harms. This kind of signal from the regulator, overreacting to inflated concerns from incumbents, can deter new entrants and services that enable consumer choice."
Furthermore, Sinclair emphasized the importance of cautious and collaborative interventions in response to speculative concerns, stating, "Interventions should be cautious and collaborative in response to such speculative concerns." He also highlighted the need for the FCA to ensure that financial services remain accessible to new players and that consumer interests are prioritized, saying, "The FCA needs to make clear that financial services are not a closed shop and it is looking out for the interests of consumers."
The CCIA's response underscores the organization's commitment to advocating for a balanced and inclusive regulatory environment in the tech and financial services industries.
