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INCREASE IN FINTECHS SCALING TO THE U.S.
FinTech is transforming the U.S. financial market. Many FinTech companies
with international headquarters continue to attract a growing amount of
attention and capital from venture capitalists and financial institutions.
Shearman & Sterling, in collaboration with the U.K. Department for
International Trade and HM Treasury, have worked to develop a market
entry guide, which provides FinTechs wanting to expand to the U.S. with a
helpful overview of considerations they should be aware of when setting up
in the U.S., allowing businesses to focus instead on their products, strategy
and fundraising.
CONTINUED RISE OF REGULATORY SANDBOXES
Over the past year, more than a dozen regulatory bodies around the world
have launched FinTech regulatory sandboxes. In the U.S., several states
also launched FinTech regulatory sandboxes, while a number of others have
drafted related legislation.
As the FinTech ecosystem continues to rapidly develop, regulatory
sandboxes provide a controlled environment for eligible FinTech firms to
conduct live testing under regulatory supervision to secure authorization
and launch their new products or services. Due to the experimental nature
of many up-and-coming FinTech products and services, this is a trend that
we see continuing throughout next year and beyond.
To learn more about the FinTech regulatory sandboxes located throughout
the world, please visit our interactive FinTech regulatory sandbox map,
available here.
COMPETITION AUTHORITIES TO DEEPEN SCRUTINY OF DATA COLLECTION
The European Commission and other competition authorities are growing
increasingly concerned that high-tech companies with droves of consumer
data are entering the financial services industry with unprecedented
advantages. Within the past few months, we've also seen the U.S.
Department of Justice open an antitrust review into whether these
companies are unlawfully stifling competition. We expect to continue to see
deep scrutiny of big tech's forays into financial services in 2020.
Is the current competition legal framework equipped to deal with the
challenges these technologies have created? Shearman & Sterling's 2019
Antitrust Annual Report discusses these concerns.
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