FCA announced that it is seeking views on how technology can make it easier for firms to meet their regulatory reporting requirements and improve the quality of the information they provide. The Call for Input will close on June 20, 2018. FCA will publish a feedback statement summarizing the views received and the proposed next steps in Summer 2018.
FCA regularly explores how technology can make regulations more efficient and reduce the regulatory burden on firms. One of the ways FCA does this is through “TechSprints” that bring together financial services providers, technology companies, and subject-matter experts to develop solutions to regulatory challenges. In November 2017, FCA and BoE had held a two-week TechSprint to examine how technology can make the current system of regulatory reporting more accurate, efficient, and consistent. At the TechSprint, participants successfully developed a “proof of concept,” which could make regulatory reporting requirements machine-readable and executable. The Call for Input outlines how this “proof of concept” was developed and asks for views on how FCA can improve this process. The paper also seeks feedback on certain broader issues around the role technology can play in regulatory reporting. This Call for Input will be of interest to regulated firms, regtech firms, fintech firms, technology and software providers, professional services providers, academics with interests in technology and financial regulation, and financial services regulators.
This “proof of concept” means that firms could map the reporting requirements directly to the data that they hold, creating the potential for automated, straight-through processing of regulatory returns. This could benefit both firms and regulators. The accuracy of data submissions could be improved and their costs reduced, changes to regulatory requirements could be implemented more quickly, and a reduction in compliance costs could lower barriers to entry and promote competition.
Comment Due Date: June 20, 2018
Keywords: Europe, UK, Banking, Reporting, Regtech, Fintech, FCA
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.
PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.
PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.
ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).