Treasury Department Issues Regulatory Report On Fintech And Innovation

Reforms that expand horizons for nonbank financial companies were recently recommended in the Treasury Department's July 31, 2018 report entitled "A Financial System That Creates Economic Opportunities: Nonbank Financials, Fintech, and Innovation" (the "Report").¹ With the Treasury Department's support, the pace of technological advances in the delivery and digitization of financial services and the economy, and capital inflows to the financial technology ("fintech") sector, will accelerate. This Alert highlights elements of the Report that are of special interest to investment and asset management professionals.

Noting emerging trends in financial intermediation, such as rapid advances in technology, increased efficiencies from the rapid digitalization of the economy and the abundance of capital available to propel innovation, the Report addresses the regulatory landscape for certain nonbank financial firms, newer business models employed by technology-based firms