On 13 October 2022, the Bank of England (the Bank) and the FCA jointly provided an update on the joint transformation programme which seeks to transform data collection from the UK financial sector. The regulators explain that they are starting phase two of the joint transformation programme which involves new use cases and also taking forward the recommendations for the phase one use cases.
The new use cases for phase two of the joint transformation programme are as follows:
- Incident, Outsourcing and Third Party Reporting (OATP) – Policy makers are considering the development of new incident OATP policies. By considering the design of this reporting policy as part of the joint transformation programme, the regulators can ensure this critical data is delivered in a way that minimises the impact on firms. At the same time, the regulators believe the use case will provide a chance to explore how best to deliver ‘event’ driven collections, where a new report is triggered when a given event occurs.
- Commercial Real Estate (CRE) database – The regulators believe that completing the design of an integrated ‘transformed’ CRE collection is a critical stepping stone to the delivery of future use cases, for instance a consolidated loan collection.
- Review Prudential Data Collection – The FCA currently collect detailed product-level financial data across the range of retail banking products and segments. The FCA want to move to a more regular collection, and design a new integrated collection that minimises the burden on firms. Furthermore, designing the ‘retail banking business model’ implementation as part of transforming data collection will allow the Bank to explore the extent to which business model data can be standardised within a tight scope of relatively homogenous firms.
Earlier this year, the joint transformation programme made seven recommendations to the regulators as a result of the work carried out during phase one. The recommendations are targeted to a selection of issues that were identified for the phase one use cases: the Quarterly derivatives statistical return ‘Form DQ’ and the Financial Resilience Survey.
The recommendations made by the programme, and the response from the regulators can be found in the July 2022 publication.