Andrei Cazacu

The UK government has released its consultation on regulating Buy-Now, Pay-Later (BNPL) products. Here's my quick take:   🔑 Key proposals: ● Bringing BNPL under FCA regulation ● Tailoring disclosure requirements for BNPL products ● Extending key consumer protections like Section 75 to BNPL agreements ● Implementing a Temporary Permissions Regime for a smooth transition   💡 The government aims to strike a balance: ●Protect consumers in this rapidly growing market ●Maintain access to useful low-cost credit options ●Allow for innovation while ensuring responsible lending   🔄 Broader implications:  ● BNPL regulation should be seen as the first step towards reforming the Consumer Credit Act (CCA). ● This move could pave the way for a more agile, FCA-oriented regulatory framework for consumer credit as a whole. ⌛ Next steps: ● 6-week consultation period ending November 29, 2024 ● FCA to develop detailed rules ● Full regulation expected 12 months after legislation   This move to regulate BNPL has been a long time coming and is finally a step in the right direction.   Increased regulation may pose challenges for some providers but ultimately should foster a more sustainable and trustworthy BNPL ecosystem.   However, key questions will remain on how the FCA will develop more detailed rules and whether we will have a two tier BNPL regulatory landscape, with direct retail lenders remaining unregulated.   Feel free to get in touch if you have any thoughts about the BNPL consultation that you would like to chat to us about!

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Some nuggets from the recent EBA & ECB report on payment fraud across Europe: 🔐 SCA has been a force for good and is effective at preventing fraud 💳 card payments have by far the highest fraud rates both in value and volume: 📈 0.031% in H1 2023, increasing from 0.026% in H1 2022 or 7.31 million fraudulent transactions out of a total of 48.77 bn total card payments 📱 credit transfer fraud rate by comparison is significantly lower at 0.003% (or 616k fraudulent transfers out of total of 21.81 bn) 💰 credit transfers are often used for high-value payments (AOV €6485), which means that the average value of of a fraudulent credit transfer is higher for credit transfers vs other types of payments, but still significantly lower than the AOV, at €1835 #payments #fraud #cardpayments #report #openbanking https://lnkd.in/dwFMUKUe

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🚀 Budget 2024: What it Means for UK Tech & Fintechs - A Quick Analysis Key changes impacting the ecosystem: 📈 Capital Gains Tax ● Basic rate: Up to 18% ● Higher rate: 24% (4% increase) ● Our research with Beauhurst suggested equalizing with personal taxes would have been devastating - thankfully, we've avoided that scenario. 👥 Employment Costs ● Employer NICs up 1.2% to 15% ● While smaller startups get some breathing room through an increased employment allowance, the reduced secondary threshold means hiring costs will rise for most. 🎯 BADR Evolution ● Staggered increases: 14% (2025) → 18% (2026/27) 💼 Investment Landscape ● Carried Interest tax rising to 32% (2025) ● R&D investment maintained despite wider cuts ● New tech adoption review led by Chief Scientific & National Technology Advisers 📊 Additional Fintech Developments: ● Commercial Credit Data Sharing scheme under review ● Help to Save reform consultation launched for financial institutions   The verdict? While no founder celebrates tax increases, the government has shown awareness of our ecosystem's importance. These changes present challenges but won't derail the UK's tech ambitions. The key now is adaptation and continued dialogue.

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Are you in the UK payments industry, and do you suffer from "consultation fatigue"? If so, then you may wish to avoid yesterday's announcement from the Bank of England... After last year's Treasury consultation on the National Payments Vision, the BoE now wants payments pros to respond to another consultation on "innovation and money in payments" A lot of what's in this consultation has already been covered in the Treasury consultation and in last year's consultations on the digital pound Are you planning to respond to this one, or have you had enough of consultations for a while? https://lnkd.in/dNuzUGrB

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Today, the Bank of England and the FCA have opened the Digital Securities Sandbox for applications. This is a major milestone in the adoption of digital asset technologies in regulated securities markets in the UK. I'm proud of the work that my team at the Bank has done over the past months and years to set up the Sandbox, including listening closely to the industry so that we design something that encourages investment in new technology in a safe and sustainable way for UK wholesale markets. Some of the changes that we have made as a response to feedback to our April consultation paper include: - Greater flexibility in firm-level limit allocations - Expansion of eligible assets to include non-GBP denominated securities - The introduction of a regular discussion forum for DSS entrants and regulators - More proportionate minimum capital requirements To find out more, including how to apply, please visit our webpage: https://lnkd.in/giG2D9H3 #digitalassets #sandbox #tokenization #tokenisation #fintech #DLT #blockchain

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The first five implementing acts of the European digital identity wallet were adopted today after around five hours of intense negotiations. The European Commission avoided missing the statutory deadline, winning over resistance from countries like Germany with last-minute tweaks. https://lnkd.in/dKg7NSjf

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Some great stats from the FinTech Wales annual report: 7️⃣3️⃣0️⃣0️⃣0️⃣ people are employed in the financial and related professional services industries in Wales. 1️⃣3️⃣0️⃣0️⃣0️⃣ are employed in Fintech specifically in Wales. £1️⃣.6️⃣bn contribution to GVA in Wales from the fintech industry. £7️⃣0️⃣m investment in Welsh fintech in 2023. 🥈Cardiff remains the second biggest insurance cluster in the UK, after London Report 👇

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Watch this space: H2O Asset Management revealed in its annual report for 2020 that it was under investigation from the FCA. We're now in 2024 and it looks like British market regulators are about to conclude their case. There's talk of a pot of money to compensate investors - who would be offered to take a deal - and of the FCA considering whether a fine would be appropriate. https://lnkd.in/d7uxKDyi

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As Use of Digital Wallets Grows with Open Loop, Transport for London and other Agencies being Hit by ‘Retokenization’ Fraud https://t.ly/NseI6 #payments #transitpayments #smartticketing #ApplePay #contactless #openpayments #publictransport

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🚨 Here are three key FinCrime stories from August. Read our full monthly RegCap below 👇 and head to our website for previous editions. 1️⃣ EUROPE: The European Banking Authority (EBA) and the European Central Bank published a joint report on fraud data in the EU (read the RegCap for findings). 2️⃣ UK: Transparency International Russia published a paper on illegal money transfers from Russia to the UK through e-payments, highlighting the use of dark web marketplaces where access to business bank accounts is sold. 3️⃣ USA: The US announced the designation of nearly 400 individuals and entities in Russia, Asia, Europe and the Middle East for their involvement in helping Russia evade sanctions and sustain its war effort. #fintechnews #compliance #fraud #aml

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CEOs of UK fintechs say doubling capital gains tax rate to 45% would harm the very businesses the Government has put at the heart of its growth strategy. Find out more on the potential impact of capital gains tax in this piece by my colleague at Business Chief Magazine, Tim Adler. #Fintech #Tax #CapitalGainsTax

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It seems reasonable that first time buyers shouldn't pay stamp duty but apart from partly reducing the total cost of the transaction it doesn't do much to improve affordability. A full review of stamp duty looking at its impact on the market including understanding if it is stopping transactions or preventing people doing things like downsizing. Alternatives should be considered to replace any lost revenue

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Last round of sessions on the FID Fraud & FinCrime Stage has just begun! 🔍 Double down on defence: The power of transaction monitoring and identity verification As financial crimes evolve, transaction monitoring and identity verification are essential for detection and compliance. Join Fairway Financial Crime, Tide, Shawbrook, Revolut, and John Lewis & Partners as they dive into the synergy between these critical processes, sharing benefits, challenges, and best practices for success. #FID #DigitalIdentity | Alicia Condon | Alexandra Green | Anna Kochanova | Malcolm O'Reilly

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Some key takeaways from the French banking regulator's €1 million fine on SocGen's BaaS company Treezor:   - Out of a sample of 30,000 clients, 99.8% were assigned a low or "moderately low" risk, leaving just 28 clients as medium or high-risk.   - The first automated KYC platform Treezor used would flag clients exclusively based off a politically exposed person (PEP) check; no litigation, regulatory, sanctions, or other checks. The company later acquired SocGen's group-wide KYC platform, but implementation was patchy and at times Treezor compliance teams were using both platforms in parallel.   - Material information easily identifiable through EDD was missed in a number of KYC cases picked for review at random by the regulator; three of the cases had not picked up that the respective clients had previously been given prison sentences. Treezor's legal team responded that, in the first case, the media coverage reporting on the prison sentence could not have been used to inform a client risk rating since media report was often unreliable; in the two other cases, it argued that the sentences were historical and as such could not affect the clients' risk ratings.   There is no doubt that Treezor should have used a more capable #KYC tool, and complemented the KYC tool with human-driven analysis and complementary research. However, it is debatable whether a €1 million fine and a formal reprimand for the largest BaaS company in France will be enough of a deterrent for companies in similar situations to spend the money and time required to establish best-in-class AML/CFT processes. Read our full article here: https://lnkd.in/e8s6sH_3

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🇪🇺 European Commission Investigates Temu Under the Digital Services Act The European Commission has launched formal proceedings against Chinese e-commerce giant Temu under the Digital Services Act (DSA). The investigation will focus on potential DSA violations in key areas, including: ◎ The sale of illegal products on the platform ◎ The potentially addictive design elements of the service ◎ Recommendation algorithms driving user purchases ◎ as well as data access for researchers. #Ecommerce #DigitalServicesAct #Temu #EuropeanCommission #DigitalRegulation #TechPolicy #DataPrivacy

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There have been recent calls for the FCA to review its creditworthiness and affordability rules but these regulations are not the problem. The cost-of-living crisis has made consumer credit unaffordable for many. Our blog https://bit.ly/3B8ALHk

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Read about the conditions we think UK payments need to thrive in our thoughts on the National Payments Vision. #PayUK #paymentsinnovation #UKpayments #NationalPaymentsVision

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COMING SOON! THE BLACKSTONE'S COUNTER FRAUD PROFESSIONALS' HANDBOOK Fraud makes up 40% of all crime reported and is now the most prevalent crime type across the UK, with an estimated 3.3 million incidents of fraud committed annually.  Royal United Services Institute has described it as the ‘volume crime of our time’ and recommended it be classified as a national security threat.  The Public Sector Fraud Authority estimates that fraud loss to the public sector is £39-59bn a year, with academic and industry leads, estimating losses across sectors could be as much as £190bn.   For the past few months my colleagues, Michael Betts, David Whitehouse-Hayes and I have been working together to provide a consolidated one stop handbook for the current counter fraud practitioner. This covers prevention, risk assessment, investigation and measurement techniques to improve your overall response. The book's aim is to offer practical, straightforward advice to help you build awareness and plan your effective response in the following areas: * Bribery & Corruption insight and investigation techniques * Leadership skills, integrity, and effectiveness * Investigation models and techniques * Emerging and existing legislation to have in your counter fraud toolkit * Fraud risk assessment, prevention, and measurement techniques. We have used our experience of operating in counter fraud and economic environments over a number of years, bringing together our experience from central, local and policing backgrounds to provide practical insight that can consolidate your understanding and support those newer to the field. We have also drawn from the Government Counter Fraud Profession (GCFP) practice, guidance and standards to ensure the approaches align, with kind permission from the PSFA who supported the development of this publication. The publication includes a forward from Mark Cheeseman OBE, CEO of the PSFA, and the architect behind the GCFP.  Mark shares his insights into effective counter fraud management, and provides rich content in the detailed Risk chapter.  We would also like to thank him for his support and counsel, which enabled us to produce this book. We hope you enjoy reading this as much as we did researching and putting it together, its available on pre order from a range of booksellers including Amazon, WH Smith and Waterstones, from 26th September 2024. Please note any financial remuneration due to the authors will be donated to a registered UK Victim Support charity- more details to follow with them soon!

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Interested in digital regulation, national sovereignty and trade? If so, this week's podcast is for you. (And who wouldn't want to ponder these fascinating questions?). https://lnkd.in/eRir65GC #tech #regulation #policy #trade

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