FCA launches call for input on use of technology for regulation
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FCA launches call for input on use of technology for regulation 21 February 2018London Reporter: Jenna Lomax
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The Financial Conduct Authority (FCA) is seeking views on how technology can make it easier for firms to meet their regulatory reporting requirements and improve the quality of the information they provide.
In a recently released call for input, the FCA, outlined the technical steps that developed this proof of concept and asked for views on how it can improve this process.
The FCA is also looking for feedback on some of the broader issues surrounding the role technology can play in regulatory reporting.
Questions asked whether there are more efficient ways to achieve machine executable reporting, if there are any specific regulatory rules or policies that could act as a barrier to implementing machine executable reporting, and, how the FCA can ensure that the potential benefits and costs are appropriately shared across the industry.
The FCA said: “All regulators need to ensure that those they regulate are complying with the rules, public confidence in regulation depends on it.”
However, it said it understood “the resulting collective burden on firms is significant.”
In November 2017, the FCA held a two-week TechSprint with the Bank of England (BoE).
TechSprint brings together financial services providers, technology companies and subject matter experts to develop solutions to regulatory challenges.
It explored the potential for a fully automated process that firms could use to provide their regulatory returns.
Commenting on the role technology can play in helping firms to meet their regulatory requirements the FCA said: “The TechSprint has proven that technologies exist and can be effectively combined to make machine-readable and machine executable regulatory reporting a reality.”
“We believe that introducing this technology to our regulatory reporting process could [...]
increased clarity, increased efficiency, result in more responsive regulation and help produce a higher quality data.”
It added: “Technology now plays an increasingly fundamental role in financial services and is also a catalyst for change and innovation.”
Christopher Woolard, FCA’s executive director of strategy and competition, commented: “Technology is a powerful shaper of financial regulation, able to make compliance simpler and more efficient.”
“Our TechSprints bring people from across the financial services world together to share their collective knowledge to solve common problems. We look forward to working with industry participants in the coming months to drive these ideas forward.”
The call for input has been sent to regulated firms, technology and software providers as well as regulatory technology and financial technology firms, among others. The deadline for comments on the call for input is 20 June 2018, after which the FCA will publish a feedback statement.
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