The FCA regularly explores how technology can make its regulation more efficient. One of the ways it does this is through TechSprints that bring together financial services providers, technology companies and subject matter experts to explore technological innovations.
In November 2017, one of these events developed a “proof of concept” which could potentially make it easier for firms to meet their regulatory reporting requirements and improve the quality of the information they provide. Essentially, the proof of concept proved that the reporting rules within the FCA Handbook and PRA Rulebook could be turned into machine readable language. Once the rules were translated, machines would be able to fulfil the requirements by assessing the information required and then pulling this information directly from a firm’s database.
The FCA has now published Call for Input: Using technology to achieve smarter regulatory reporting. The call for input outlines the technical steps that developed this proof of concept and asks for views on how the FCA can improve this process. The FCA is also seeking feedback on some of the broader issues surrounding the role technology can play in regulatory reporting. The call for input is structured as follows:
- section 1 outlines the FCA’s approach to encouraging the adoption of technologies specifically designed to overcome the regulatory challenges firms face;
- section 2 gives a detailed explanation of the results of the TechSprint; and
- section 3 discusses some of the implications and challenges involved in implementing changes to the way firms report regulatory information across the financial services industry.
The FCA notes that there will be a series of roundtables hosted by TechSprint participants to further discuss some of the relevant legal, technological and regulatory issues.
The deadline for comments on the call for input is 20 June 2018. The FCA intends to publish a feedback statement during the summer which will bring together the results of the roundtables and further industry discussions, as well as the feedback for the call for input.
View FCA call for input on using technology to achieve smarter regulatory reporting, 20 February 2018