Presentations from the FinTech Northern Breakfast Club on 23 June 2016. Meeting held the last Thursday of every month. Book at http://www.scottrobert.co.uk/events/list/

1. FinTech, Regulatory Risk, Compliance and Strategy experts
www.scottrobert.co.uk
FinTech Northern Breakfast Club
23 June 2016

2. FinTech, Regulatory Risk, Compliance and Strategy experts
www.scottrobert.co.uk
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

3. FinTech, Regulatory Risk, Compliance and Strategy experts
www.scottrobert.co.uk
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

4. FinTech, Regulatory Risk, Compliance and Strategy experts
www.scottrobert.co.uk
FCA Regulatory Sandbox
• 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

5. FinTech, Regulatory Risk, Compliance and Strategy experts
www.scottrobert.co.uk
FCA Regulatory Sandbox
• 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

6. FinTech, Regulatory Risk, Compliance and Strategy experts
www.scottrobert.co.uk
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

7. © 2013

8. © 2013
REVOLUTION: THE FINTECH REMIX

9. © 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

10. © 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

11. © 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

12. © 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

13. © 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.

14. © 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.

15. © 2013
Any Questions

16. © 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
Susan.Hall@clarkewillmott.com
www.clarkewillmott.com