Rt Hon Karen Bradley MP has issued a warning following the publication of the Kalifa review that the UK must avoid the mistakes of German regulators with regard to German fintech champion Wirecard.
The Rt Hon Karen Bradley MP, CBBS APPG Chair commented:
“In publishing our interim report on Wirecard we welcome the Government’s response to the Kalifa review. However, the Treasury and the Government must learn the lessons of failures like Wirecard.
The German Government’s Wirecard disaster has demonstrated that wishful thinking is no foundation for global financial success. We welcome UK Government support for Kalifa’s proposed Fintech “scale-box” which will hopefully give firms the space to grow and regulators and the market the certainty that undue risks taken.
The APPG is strongly of the view that firms need proportionate regulation which matches their size, complexity and market exposure. Regulators need to be fleet of foot enough to anticipate the issues that arise as firms scale and must have the specialist knowledge to understand how these new types of institutions work.
We are seeing the rise of increasing complexity in financial services especially with globally interconnected firms such as Wirecard. The UK regulatory system needs to be fit for purpose in being able to cope with this complexity and regulators need to have the technical understanding of the issues to be able to stay one step ahead of potential problems.”
You can read the APPG’s Wirecard Interim Report here.