FinTech Northern Breakfast Club 23 June 2016

FinTech, Regulatory Risk, Compliance and Strategy experts

www.scottrobert.co.uk

FinTech Northern Breakfast Club23 June 2016



FinTech June Update

• Foreign Direct Investment (FDI) in UK Financial Services Sector at its highest level since 2006 with FinTech share significantly increasing

• Bank of England launched FinTech Accelerator programme

• London FinTech week 18 July to 22 July

• FCA Regulatory Sandbox applications close 8 July



FCA Regulatory Sandbox

• Scheme offers firms the opportunity to test ‘true’ innovation

• Firms applying for authorisation under the sandbox scheme will not be subject to the standard FCA requirements

• Authorisation will be ‘with restrictions’

• Open to new start-ups and existing authorised firms




• Firms must meet the criteria in order to be received into the sandbox:• The proposal must demonstrate genuine innovation

• There must be a demonstrable benefit to consumers, either direct or indirect

• The firm’s idea must be intended to be tested in the UK financial services market

• The firm must be ready to launch its innovative proposition

• The tests must be feasible




• Applications for the first Sandbox tranche close 8 July 2016

• Applications can be made using the standard application form but should be submitted with supporting documentation

• Research and evidence will be required by the FCA

• Second tranche expected in Autumn 2016



Innovative Finance ISA

• Innovative Finance ISA (IFISA) now available as a wrapper for peer 2 peer and loan-based crowdfunding investments

• Standard annual ISA limits apply

• Only ‘fully authorised’ may offer the IFISA

• Financial Advisory firms are able to advise upon peer 2 peer investments

© 2013

© 2013

REVOLUTION: THE FINTECH REMIX

© 2013

We All Want to Change the

World

What, exactly, is Fintech?

- Radical technology-driven shake-up of the

financial services sector

- The term comprises products, services,

concepts, platforms, apps, expert systems and

even digital currencies such as Bitcoin

- Big data driven

- Highly disruptive – one of the first examples of

Fintech (before the name was coined) was the

ATM which has effectively reshaped consumers’

relationship with their banks

© 2013

You say you’ve got a real

solution

But how to protect it?

There are restrictions under the European

Patent Convention Patents for business

methods, software programs “as such” and

inventions or discoveries. This means

patenting many Fintech inventions is difficult or

impossible.

Trade secret protection in concepts and ideas

Copyright in code and scripts for expert rules

© 2013

We'd all love to see the plan

How does one do due diligence for Fintech?

What are the specific problems and issues arising with a given

Fintech proposal ?

Consider in particular

– Regulatory

– Funding

– Data protection issues

– Liability

© 2013

You ask me for a contribution

How does one invest in Fintech technology?

The importance of proper structures

NDAs – worth the paper they’re written on?

Joint Venture ups and downs

Protection of minority interests

How to ring fence relevant IP when it comes to successive

investment rounds

Risk and rewards – how to structure income streams

© 2013

You tell me it's the institution

Big data drives Fintech innovations.

Particularly in fields such as usage-based insurance, how one

gets the data and justifies using it are key.

GDPR lays stress on the legal basis for processing data.

© 2013

Better free your mind instead

Try to imagine a world without the changes brought by the ATM

The next Fintech revolution could be equally transformative –

and we don’t know where or when it will be.

© 2013

Any Questions

© 2013

Contact Details

Susan Hall

Partner_______________________________________________________________________________________________________

Clarke Willmott LLP

19 Spring Gardens

Manchester. M2 1FB

tel: 0345 209 1498/+44 117 305 6498

mob: 07712 661939

fax: 0845 209 2005

[email protected]

www.clarkewillmott.com

mailto:[email protected]

http://www.clarkewillmott.com/

Economy & Finance

FinTech Northern Breakfast Club 23 June 2016