DLA: What relevance does the Legal, Risk & Compliance Committee’s work for our members have?
Zorana Bejtovic: The committee offers members a platform to connect and collaborate with other ecosystem participants on key regulatory topics affecting Digital Lenders across various EU legislation and regulatory frameworks. Whether an organization falls under ESCPR, MiFID, or AIFMD, the association and the committee serve as a guiding force, helping members navigate the increasingly complex regulatory landscape. The committee’s key outcomes are defined in the industry guidelines applicable to the diverse business models within the association. By actively engaging with policymakers and stakeholders, the committee ensures that industry voices are heard and considered in the legislative process. Through its consultations, it aims to contribute to the development of balanced and effective regulations that support innovation while maintaining compliance and stability within the sector.
DLA: What are the hot topics at the moment?
Zorana Bejtovic: In recent years, the regulatory landscape for Digital Lenders has been significantly shaped by the introduction of ECSPR (European Crowdfunding Service Providers Regulation) and DORA (Digital Operational Resilience Act). ECSPR establishes licensing requirements for Fintech Lenders as crowdfunding service providers, while DORA introduces a risk management framework for IT systems.
While the initial challenges of implementing these regulations are largely behind us, DLA members continue to gather insights and engage in open dialogue with institutions regarding ambiguities in certain requirements. Although the DLA has been supportive throughout this process, there is still room for improvement. To address these challenges more effectively, a dedicated ECSPR Work Group has been established.
Over the past year, members have been actively engaged with emerging regulatory topics such as the macroprudential framework for non-bank financial intermediaries (NBFI), the Financial Data Access Regulation (FIDA), and the AI Act. These developments continue to shape the regulatory landscape, requiring ongoing discussion and collaboration to ensure alignment with industry needs.
DLA: What are currently the biggest challenges in the market?
Zorana Bejtovic: It’s no secret that the European economy has faced significant challenges in recent years due to macroeconomic and geopolitical developments, and Digital Lenders are no exception. At the same time, they must navigate an increasingly complex regulatory environment. While these regulations are necessary to ensure stability and consumer and investor protection, they also introduce operational challenges for industry participants, requiring continuous adaptation and strategic planning. DLA and its committee play a crucial role in supporting members through these challenges.
DLA: Thank you very much for the interview, Zorana. We are really happy to have you as our committee chairwoman!
Photo credits:
- Zorana Bejtovic: creditshelf
- Cyber Risk: TheDigitalArtist @ Pixabay