Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri participated in the Eurofi Financial Forum held in Tallinn, Estonia this week. Eurofi is a non-profit organisation that helps industry and public decision makers reach a common understanding of possible evolutions required in the regulation and supervision of financial services and open the way to legislative or industry-driven solutions.

Schembri spoke about the Capital Market Union and the possible framework that also includes Fintech. He pointed out that Fintech cannot be excluded from capital markets and explained that in an age where markets are increasingly looking towards new and innovative products coupled with increased pressure to minimise time, Fintech will determine which players will swim and which will sink during the next few years. The recent interest in the use of alternative funding, such as ICOs, should also add a further dimension to the role of Fintech in the financial world. 

The Parliamentary Secretary concluded that it is important not to overregulate. A framework for Fintech should provide the right balance between protecting the customer, AML regulations, and experimentation. He emphasised that any approach should be limited to help create a better ecosystem, where firms can reduce structural costs, comply more easily and effectively with regulation and, ultimately, become better providers of capital markets services to the end users of finance and the real economy.

During the forum, Schembri also had the opportunity to meet and discuss with several members of European regulatory authorities and other stakeholders across the euro area including Eurofi President David Wright, the Deputy Director of the European Department of the IMF Mahmood Pradhan, and Jonathan Taylor, Vice-President of the European Investment Bank.