Who needs to read it? Why?
Anyone involved in the provision of FinTech services internationally should read the guide.
What does it cover?
The Legal Guide to FinTech 2018 gives a global perspective on the use of artificial intelligence in FinTech, regulation of crypto currency and private equity block-chain use-cases.
The Guide also provides an overview of 43 jurisdictions, from Australia to the United States, by leading lawyers in those jurisdictions. In relation to each of the 43 jurisdictions, the commentators answer the following points:
The FinTech landscape
- The types of FinTech businesses that are active in the jurisdiction and any notable FinTech innovation trends of the past year with particular sub sectors (e.g. payments, asset management, peer to peer lending or investment, insurance and block chain applications).
- The types of FinTech business that are at present prohibited or restrictive in the jurisdiction (for example, crypto currency-based businesses)?
Funding for FinTech
- Broadly, what types of funding are available for new and growing businesses in the jurisdiction (covering both equity and debt)?
- If there are any special incentive schemes for investment in tech/FinTech businesses, or in small/medium-sized businesses more generally, in the jurisdiction, e.g. tax incentive schemes for enterprise investment or venture capital investment?
- What conditions need to be satisfied for a business to IPO in the jurisdiction?
- If there have been any notable exits (sale of business or IPO) by the founders of FinTech businesses in the jurisdiction?
- Description of the regulatory framework(s) for FinTech businesses operating in the jurisdiction, and the type of FinTech activities that are regulated.
- Are financial regulators and policy-makers in the jurisdiction receptive to FinTech innovation and technology-driven new entrance to regulated financial services markets, and if so how is this manifested?
- What, if any, regulatory hurdles must FinTech businesses (or financial services businesses offering FinTech products and services) which are established outside the jurisdiction overcome in order to access new customers in the jurisdiction?
Other regulatory regimes/non-financial regulation
- Does the jurisdiction regulate the collection/use/transmission of personal data, and if yes, what is the legal basis for such regulation and how does it apply to FinTech businesses operating in the jurisdiction?
- Do data privacy laws apply to organisations established outside the jurisdiction? Do the data privacy laws restrict international transfers of data?
- Brief description of the sanctions that apply for failing to comply with the jurisdictions data privacy laws?
- Does the jurisdiction have cyber security laws or regulations that may apply to FinTech businesses operating in the jurisdiction?
- Description of any AML and other financial crime requirements that may apply to FinTech businesses in the jurisdiction?
- Any other regulatory regimes that may apply to FinTech businesses operating in the jurisdiction?
- What is the legal framework around hiring and dismissal of staff in the jurisdiction? Are there any particularly owner’s requirements or restrictions that are frequently encountered by businesses?
- What, if any, mandatory employment benefits must be provided to staff?
- What, if any, hurdles must businesses overcome to bring in employees from outside the jurisdiction? Is there any special route for obtaining permission for individuals who wish to work for FinTech businesses?
- Brief description of how innovations and inventions are protected in the jurisdiction?
- Brief description of how ownership of IP operates in the jurisdiction?
- In order to protect or enforce IP rights in the jurisdiction, do businesses need to own local/national right or are they able to enforce other rights (for example, do any treaties or multi-jurisdictional rights apply)?
- How do businesses exploit/monetise IP in the jurisdiction and are there any particular rules or restrictions regarding such exploitation/monetisation?
The Legal Guide to FinTech 2018 is necessarily high level but provides a vital insight for anyone involved in cross-border provision of FinTech, or who is trying to decide in which country they should base their FinTech’s start up.
Refer to the Guide online here.
Read more of our related insights.View all insights