The European regulatory framework for Fintech: lessons from the Wirecard case

Abstract

Fintech sektor donosi brojne inovacije, ali i specifične rizike, uključujući nedostatke u unutarnjim kontrolama tvrtki, kompleksnost tehnologije i financijskih aranžmana te potencijalne pravne praznine u regulaciji. Slučaj Wirecarda, jedne od europskih Fintech kompanija, opisuje nam propast naizgled obećavajuće Fintech tvrtke uslijed brojnih problema u njenom korporativnom upravljanju, kao što su slabe interne kontrole, nepotpuna revizija i manjak transparentnosti u financijskim izvještajima. Ova propast istaknula je potrebu za strožim regulatornim nadzorom, jasnim revizijskim praksama i unaprjeđenjem transparentnosti u financijskim izvještajima, a služi i kao podsjetnik regulatorima da moraju biti agilniji u praćenju dinamike financijskih inovacija u Fintech sektoru. Jedna od važnijih lekcija ovog slučaja jest kreiranje regulatornih rješenja primjerenih inovacijama u Fintechu, čiji bi fokus trebao biti na zaštiti korisnika Fintech usluga, ali i investitora u sektoru. Također, Wirecard slučaj ističe nam važnost internih kontrola, revizije i transparentnosti kao okosnica javnog povjerenja u financijski sektor i održivijeg razvoja Fintech industrije u Europi.The Fintech sector brings numerous innovations, but also specific risks, including shortcomings in the internal controls of companies, the complexity of technology and financial arrangements, and potential legal gaps in regulation. The case of Wirecard, one of the European Fintech companies, describes the collapse of a seemingly promising Fintech company due to numerous problems in its corporate governance, such as weak internal controls, incomplete auditing and lack of transparency in financial statements. This failure highlighted the need for stricter regulatory oversight, clear audit practices and improved transparency in financial statements, and serves as a reminder to regulators that they need to be more agile in monitoring the dynamics of financial innovation in the Fintech sector. One of the more important lessons of this case is the importance of creating regulatory solutions appropriate to innovations in Fintech, the focus of which should be on protecting users of Fintech services, as well as investors in the sector. Also, the Wirecard case highlights the significance of internal controls, auditing and transparency as the backbone of public trust in the financial sector and more sustainable development of the Fintech industry in Europe