Finance and Markets Global Insight - Issue 21, 2021

In this issue we see a continuation of two key themes (i) the adoption of technology as a key aspect of modern life requiring regulators to balance protecting consumers whilst recognising that these technologies may ultimately lead to better services and (ii) the need to find ways to address climate change within our modern business and financial system.

On the climate theme we see opportunities through the development of a green market and assess the inaugural green gilt (bond) listed on the sustainable bond market of the London Stock Exchange in September.

We also look at the use of new technology approaches such as tokenisation to meet challenges to society such as climate change. How can tokenisation techniques help to address some of the challenges arising from climate change.

With regard to advancing technologies we look at cryptoassets which are increasingly becoming a mainstream asset and consider the need for balance between innovation and consumer protection as highlighted in a speech by the FCA chair on risks of online cryptoasset promotions. The speech highlights the continued need for vigilance against fraud and scams in this fast growing and volatile asset class.

We also look at one example of how payments technology is being more widely adopted in the UK with the contactless payment limit being raised to GBP100.

Different countries take different positions on certain types of financial products from time to time and we comment on the regulation of certain complex products known as turbo securities and the differing view of regulators within the EU as to how these products may be marketed and sold to retail investors.

As readers reflect on the topics covered in this issue we would welcome your thoughts on what businesses should be doing to address sustainability and governance issues to provide for a more balanced approach to climate and environmental concerns and what you think the role of the regulator should be in allowing markets to adapt to new technologies.

We hope you enjoy the insights brought to you in this issue and welcome your feedback.