On 20 July 2018, the FCA published the terms of reference for its Digital Regulatory Reporting Pilot (the Pilot). Following an FCA event which proved that machine executable regulatory reporting is technologically feasible, the Pilot aims to evaluate the potential benefits of machine readable and executable regulatory reporting via the development of a minimum viable product. The core objectives of the Pilot are:
- to develop a working prototype solution that demonstrates the end-to-end process for machine executable reporting;
- to develop the prototype across two use cases, one with a retail focus and another with a wholesale focus, to help ensure broad coverage across the industry;
- to share the findings of the Pilot with the wider industry to facilitate feedback and allow for an industry effort to explore the feasibility of creating a new reporting mechanism; and
- to evaluate the potential costs and benefits of a new reporting mechanism in comparison to the current means of data collection for firms of varying sizes.
The terms of reference further outline those members participating in the Pilot’s Steering Committee and Core Working Group.