Financial regulator issues call for feedback on proof concept developed in TechSprint
The Financial Conduct Authority (FCA) has called for views on how technology can make it easier for firms to meet regulatory reporting requirements and provide better quality information.
It has issued a call for input on a proof of concept, asking for suggestions on how it can be improved and feedback on some of the broader issues around reporting.
The move follows a two-week TechSprint in November of last year aimed at making the requirements machine-readable and executable. This would enable companies to 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 this could benefit firms and regulators by improving the accuracy of the data, reducing costs, and making it possible to implement changes to regulations more quickly.
Every year the organisation receives over 500,000 scheduled regulatory reports from companies, as well as additional ad hoc reports. It said the data is critical to effective supervision and its ability to detect financial crime.
Open source model
The call for feedback document emphasises the use of an open source model as a way of encouraging collaboration, and enabling specific firms to adapt the technology to their needs.
It also acknowledges a need for a governance mechanism to decide then manage the implementation of a machine executable reporting system. It says the FCA wants to understand how governance can work in an environment where participants are co-creating the solution.
Christopher Woolard, the FCA’s executive director of strategy and competition, said: “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 feedback is open until 20 June, and the FCA plans to publish a summary statement during the summer.
