General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
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

HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%

HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.

April 16, 2019 WebPage Regulatory News
News

EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2

The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.

April 16, 2019 WebPage Regulatory News
News

FDIC Consults on Approach to Resolution Planning for IDIs

FDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.

April 16, 2019 WebPage Regulatory News
News

EP Resolution on Proposal for Sovereign Bond Backed Securities

The European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).

April 16, 2019 WebPage Regulatory News
News

PRA Seeks Input and Issues Specifications for Insurance Stress Tests

PRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.

April 15, 2019 WebPage Regulatory News
News

PRA Finalizes Policy on Approach to Managing Climate Change Risks

PRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).

April 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for April 2019

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

April 12, 2019 WebPage Regulatory News
News

EIOPA Statement on Application of Proportionality in SCR Supervision

EIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.

April 11, 2019 WebPage Regulatory News
News

FED Updates Form and Supplemental Instructions for FR Y-9C Reporting

FED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.

April 11, 2019 WebPage Regulatory News
News

OSFI Finalizes Guidelines on Liquidity Adequacy and NSFR Disclosures

OSFI published the final Liquidity Adequacy Requirements (LAR) guideline and the net stable funding ratio (NSFR) disclosure requirements guideline.

April 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2920