Description

CFRC01: THE COMPLIANCE FRAMEWORK IN A FINTECH ENVIRONMENT

Overview

This unit positions the traditional compliance function in the technologically driven Fintech environment. The unit initially differentiates Fintech /operating models from so-called traditional financial services providers, reviews the existing regulatory environment from a Fintech perspective, and details the Fintech authorisation models. Overlaying the broad compliance framework, the unit progresses to examine the compliance framework and regulatory risks in the context of a Fintech business model, for example: anti-money laundering (AML), data protection, safeguarding, and outsourcing risks. Finally, the unit focuses on fitness, probity, and conduct risks in a Fintech environment. Overall, the unit provides learners with the technical competence and operational perspective to effectively work (and manage compliance functions) within the contemporary Fintech operating environment.

 

Aims & Objectives

1. On the successful completion of this unit learners will be able to:
2. Differentiate the technologically enabled business models of Fintech’s versus traditional financial service providers.
3. Understand the structure of the International, European, and Irish regulatory environment from a Fintech perspective.
4. Appraise the authorisation models for Fintech credit, payment, and electronic money institutions.
5. Analyse from an operational perspective the AML/CFT compliance and regulatory reporting risks in a Fintech operating environment.
6. Assess the compliance risks associated with date protection and the ethical use of personal data in a Fintech data driven operating model.
7. Identify the contemporary compliance risks in the safeguarding arrangements of payment and electronic money institutions.
8. Evaluate the regulatory focus upon compliance risks related to outsourcing of critical services by financial service providers.
9. Demonstrate an awareness of fitness, probity, conduct, and authorisation risks in an evolving Fintech environment.

 

Summary

CFRC01.1: Fintech’s versus Traditional Financial Service Providers
Examine the evolution and scope of Fintech – the technological enhanced provision of Financial Services – and differentiate Fintech business and operating models from traditional financial institutions.
CFRC01.2: The Fintech Regulatory Environment
Contextualise the current regulatory environment for Financial Services providers from the perspective of international standard setting bodies and the core European (Irish) regulatory authorities.
CFRC01.3: Fintech Authorisation Models
Assess the detailed authorisation process for Fintech credit institutions, payments institutions and electronic money providers in the context of contemporary Central Bank (Central Bank) and European Banking Authority (EBA) regulation and guidance.
CFRC01.4: Anti-Money Laundering Compliance in a Fintech Environment
Review the evolution of AML Directives and the subsequence transposition into national (Irish) legislation in the context of compliance and regulatory reporting in an innovative Fintech payments environment.
CFRC01.5: Data Protection in a Fintech Environment
Evaluate the compliance risks and regulatory focus on the protection, governance, and ethical use of personal and non-personal, data in an increasingly digitised Financial Services environment.
CFRC01.6: Safeguarding Risks
Analyse the contemporary compliance and regulatory risks, and best practice guidelines, in the safeguarding arrangements of Fintech payment and electronic money institutions.
CFRC01.7: Outsourcing Risks
Detail the Central Bank and EBA’s guidelines on the outsourcing and related mitigation of concentration, operational and systematic risks, of critical Financial Services by Fintech providers.
CFRC01.8: Fitness and Probity and Conduct Risk
Quantify the requirements of the Central Bank of Ireland’s Fitness and Probity Regime, and the specific Central Bank guidance on the specific requirements related to payment and electronic money institutions.

 

Delivery

WEEKS 1- 8	Mode	Duration
Foundations: Concepts and Knowledge	Self-Study on-demand ‘lecture’ or demonstration	2 hours per week
Applications: Knowledge and Techniques	Self-Study on-demand ‘lecture’ or demonstration	2 hours per week
Reading and Resources	Directed e-Learning Reference material	2 hours per week
Tutorials: Scenarios and Demonstrations	Live online facilitated by PAT Fintech in conjunction with industry practitioners and specialists as guest faculty	3 hours per week
Quizzes/Tests	MCQ Weekly online Self-Complete Assessment	To be submitted prior to following Tutorial

 

Unit Assessment

Method of Assessment	Weighting (%)	Unit Aims & Objectives Assessed
4 Competency-based MCQ’s	40%	1,2,3,4,5,6
Final Scenario-based Examination	60%	3,4,5,6,7,8

 

CFRC02: COMPLIANCE AND REGULATORY RISK IN THE FINTECH ECOSYSTEM

Overview

This unit explores the Irish (EU) Fintech ecosystem and analyses the scope of current and evolving Fintech products/services. The unit identifies areas of increasing regulatory attention and differentiates the source of compliance risks related to the provision of specific Fintech services, for example: banking, credit/lending, funds, savings/investment, and insurance sectors. There is a specific focus on the innovation and compliance risk with respect to payments infrastructure, and the challenges of regulating crypto (digital) currencies/assets. The unit also evaluates specific risks to consumer protection and reviews the compliance risks issues related to the data-driven/customer centric product development, the unbundling of Financial Services, and the integration of third-party services providers. Finally, to complete the learner’s appreciation of compliance risk in the Fintech ecosystem, the unit evaluates the importance of a compliance culture in the provision of Financial Services, specifically in a technologically driven operating/business model.

 

Aims & Objectives

On the successful completion of this unit learners will be able to:

1. Summarise the scale and evolution of the Irish Fintech ecosystem in the context of the EU strategic objectives.
2. Identify areas of EU & Irish legislative and regulatory focus and differentiate between the compliance risks associated with specific Fintech products/services.
3. Analyse the Fintech regulatory risks and compliance challenges in an evolving domestic and cross-border payments infrastructure.
4. Identify the compliance risks related to regulated and non-regulated crypto- currencies and crypto-assets services.
5. Assess specific consumer protection risks inherent in the innovation of financial products in the Fintech ecosystem.
6. Examine the compliance, and ethical, risks of an increasingly data -driven Fintech product development cycle.
7. Evaluate the risk management structures necessary to control the compliance risks associated with the unbundling of traditional Financial Services.
8. Contextualise the importance of a compliance culture in the provision of Financial Services in the Fintech ecosystem.

 

Summary

CFRC02.1: The Fintech Ecosystem
Contextualise the scale and evolution of Fintech providers and evaluates the EU Commission’s strategy of optimising the benefits of Fintech with appropriate compliance and regulatory frameworks.
CFRC02.2: Regulatory Focus on Fintech Risks
Analyse the specific regulatory risks associated with innovation in Financial Services and assess the resilience of operating/business models across the Fintech ecosystem of services/products.
CFRC02.3: Regulating Payments in the Fintech Ecosystem
Assess the compliance and regulatory risks in the contemporary and evolving Fintech payments ecosystem, including the impact of peer-to-peer (DLT) networks, the adoption of stable coins, and the issuance of CBDC.
CFRC02.4: Regulating Crypto Currencies/Assets in the Fintech Ecosystem
Evaluate the evolution of crypto-currencies assets in the context the legal, compliance regulatory risks associated with balancing technological innovation in the Fintech ecosystem with financial stability.
CFRC02.5: Consumer Protection in the Fintech Ecosystem
Examine the compliance risks related to consumer protection in the context of creating transparent, fair, and inclusive marketplaces for Fintech enabled financial products and services.
CFRC02.6: Compliance Risks in Fintech Product Development
Review the ethical and compliance related to the increasingly data-driven – algorithmic – nature of products and services in the Fintech ecosystem, focusing specifically on the explainability and interpretability of Machine Learning (ML)/AI solutions.
CFRC02.7: Fintech Compliance & Control Structures
Focus on the importance of implementing scalable compliance and risk management control structures as Fintech’s increasingly unbundle traditional Financial Services and integrate with third-party providers.
CFRC02.8: Compliance Culture in the Fintech Ecosystem
Contextualise the regulatory requirements, including the Senior Executive Accountability Regime (SEAR), into the importance of a compliance culture, specifically in a technologically driven Fintech environment.

 

Delivery

WEEKS 1- 8	Mode	Duration
Foundations: Concepts and Knowledge	Self-Study on-demand ‘lecture’ or demonstration	2 hours per week
Applications: Knowledge and Techniques	Self-Study on-demand ‘lecture’ or demonstration	2 hours per week
Reading and Resources	Directed e-Learning Reference material	2 hours per week
Tutorials: Scenarios and Demonstrations	Live online facilitated by PAT Fintech in conjunction with industry practitioners and specialists as guest faculty	3 hours per week
Quizzes/Tests	MCQ Weekly online Self-Complete Assessment	To be submitted prior to following Tutorial

 

Assessment

Method of Assessment	Weighting (%)	Unit Aims & Objectives Assessed
4 Competency-based MCQ’s	40%	1,2,3,4,5,6
Final Scenario-based Examination	60%	3,4,5,6,7,8