March 13, 2019

FCA published results of the phase 1 of a pilot project on the Digital Regulatory Reporting. The pilot explored how firms and regulators could use technology to make the current process of regulatory reporting more accurate, efficient, and consistent. The report sets out the context for this project, describes the current approach to regulatory reporting, and provides information about objectives of the pilot and how it was organized and its objectives. It then offers an overview of the Digital Regulatory Reporting vision and the prototype developed. Finally, the report sets out the key findings of this pilot phase, along with the planned next steps.

During 2018, FCA and BoE collaborated with Barclays, Credit Suisse, Lloyds, Nationwide, NatWest, and Santander to conduct a six-month pilot on Digital Regulatory Reporting. The pilot broke down regulatory reporting into three tightly linked but independent processes: converting regulation into code (machine-executable regulation), defining standardized firm data, and developing a system to allow automated creation of regulatory reports by executing machine-executable regulation against standardized firm data. The pilot team used distributed ledger technology to quickly build a prototype that incorporated all three processes. The pilot considered two use cases—namely, UK domestic mortgage reporting and calculation of the common equity tier 1 ratio.

The pilot process has built a better understanding both of how Digital Regulatory Reporting could potentially be delivered and the potential challenges of a roll out of Digital Regulatory Reporting for both regulators and firms. Among others, the pilot found that, for regulatory reporting to be automated, the instructions need to be provided as a code that references data provided by firms. FCA, BoE, and a group of regulated institutions will be participating in a second phase of the pilot. The second phase aims to identify which regulatory reports are appropriate for a Digital Regulatory Reporting solution, whether there is value in investing in Digital Regulatory Reporting, how best to create machine-executable regulation, and if and how to efficiently standardize firm data. The regulated institutions to be involved in this second phase include Barclays, Credit Suisse, HSBC, NatWest, Santander, and Lloyds Banking Group. 

 

Related Links

Keywords: Europe, UK, Banking, Insurance, Securities, Digital Regulatory Reporting, Regtech, Suptech, Reporting, DLT, NLP, Phase 1, BoE, FCA

Related Articles
News

CFTC Proposes to Amend Derivatives Clearing Organization Regulations

CFTC proposed amendments to certain regulations applicable to registered derivatives clearing organizations (DCOs) under Part 30 of the CFTC regulations.

May 16, 2019 WebPage Regulatory News
News

APRA Licenses Societe Generale As Foreign Deposit-Taking Institution

APRA granted Societe Generale a license to operate as a foreign authorized deposit-taking institution under the Banking Act of 1959.

May 16, 2019 WebPage Regulatory News
News

EBA Provides Updates on Its Work on Basel III Impact Assessment in EU

EBA is working to finalize the impact assessment on implementation of Basel III standards, in response to the EC call for advice, which was received on May 04, 2018.

May 16, 2019 WebPage Regulatory News
News

FED Publishes Report Summarizing Regulatory and Supervisory Activities

FED published a report that summarizes banking conditions and the supervisory and regulatory activities of FED, in conjunction with semiannual testimony before Congress by the Vice Chairman for Supervision.

May 15, 2019 WebPage Regulatory News
News

US Agencies Propose to Amend Regulatory Framework for Foreign Banks

US Agencies (OCC, FED, and FDIC) proposed a regulatory framework for foreign banks operating in the U.S. that would more closely match the rules for foreign banks with the risks they pose to the U.S. financial system.

May 15, 2019 WebPage Regulatory News
News

ECB Consults on EONIA to €STR Legal Action Plan

ECB published a consultation, which was launched by the working group on euro risk-free rates, on recommendations to address the legal implications for new and legacy contracts referencing the euro overnight index average (EONIA), as a result of the proposed transition from EONIA to the euro short-term rate (€STR).

May 15, 2019 WebPage Regulatory News
News

FASB Offers Targeted Transition Relief Under Credit Losses Standard

FASB issued an Accounting Standards Update 2019-05 (on Topic 326) that eases transition to the credit losses standard by providing the option to measure certain types of assets at fair value.

May 15, 2019 WebPage Regulatory News
News

European Council Adopts Updated Rules on Clearing of OTC Derivatives

European Council adopted a regulation improving the existing regulatory framework applicable to the market for over-the-counter (OTC) derivatives.

May 14, 2019 WebPage Regulatory News
News

European Council Adopts Package on CRD 5, CRR 2, BRRD 2, and SRMR 2

European Council adopted a comprehensive legislative package that will reduce risks in the banking sector and further reinforce banks' ability to withstand potential shocks.

May 14, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for May 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

May 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3080