UK watchdog launches consultation on new technology for submitting reports
20 Feb 2018

The Financial Conduct Authority (FCA) is seeking views about how firms can use technology to meet its standards as well as improve the quality of information they submit.

The FCA, which every year receive receives over 500,000 scheduled regulatory reports from firms, as well as additional ad hoc reports, is asking for feedback on how a new process called ‘proof of concept’ can be improved upon.

‘Proof of concept,’ which makes regulatory reporting requirements machine-readable and executable, was developed by participants at an FCA event called TechSprint.

“Firms could map the reporting requirements directly to the data that they hold, creating the potential for automated, straight-through processing of regulatory returns,” the FCA said on Tuesday.

The process could work out to be beneficial to both firms and regulators – the accuracy of data submissions could be improved, for example, and changes to regulatory requirements could be implemented more quickly, the FCA explained.

In addition, ‘a reduction in compliance costs could lower barriers to entry and promote competition.’

Christopher Woolard, the FCA’s executive director of Strategy and Competition, said: “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 will close on 20 June 2018, afterwhich the FCA will publish feedback on the views received and the proposed next steps in Summer 2018.

The FCA has been gradually broadening its interest and activities in the tech sector.

On Monday it announced its first fintech arrangement with an American regulator, the deal with the US Commodity Futures Trading Commission (CFTC), aimed at bolstering opportunities for fintech firms in both British and US markets.

It has also signed similar deals with the Monetary Authority of Singapore and the Hong Kong Securities and Futures Commission.

Read more:

British and us regulators sign first fintech deal

Artificial Intelligence in Asia: who’s the boss – Singapore, China or Japan?

Confessions of a compliance officer: How I handled dodgy demands

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