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Version date: 3 July 2018 - onwards

2. Background

2.1 General

1. Article 1(5) of the Regulation establishing the EBA (Regulation (EU) No 1093/2010) requires the EBA to contribute to promoting a sound, effective and consistent level of regulation and supervision, ensuring the integrity, transparency, efficiency and orderly functioning of financial markets, preventing regulatory arbitrage and promoting equal competition. In addition, Article 9(2) requires the EBA to monitor new and existing financial activities.

2. These mandates are key motivations underpinning the EBA’s interest in financial innovation in general and more specifically FinTech, which is defined by the FSB as ‘technologically enabled financial innovation that could result in new business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services’.

3. The EBA has decided to take forward work in relation to FinTech by initially publishing a Discussion Paper on its appro