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 are being sought by the UK’s Financial Conduct Authority (FCA).
The FCA’s Call for Input follows the successful development last autumn of a “proof of concept”, which could make regulatory reporting requirements machine-readable and executable.
This, the FCA says, means firms could map the reporting requirements directly to the data they hold, creating the potential for automated, straight-through processing of regulatory returns.
The Call for Input outlines how this “proof of concept” was developed and asks for views on how the FCA can improve this process. It aims to find ways to make it easier for firms to deliver the 500,000-plus scheduled regulatory reports the FCA receives every year.
The paper also seeks feedback on some of the broader issues surrounding the role technology can play in regulatory reporting.
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. 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, with a feedback statement and proposed next steps due in summer 2018.
The consultation launch follows news that FCA fines levied in 2017 amounted to £229.4m, representing a stark increase on the £22.2m-worth of fines imposed in 2016.
The FCA says the higher total amount in 2017 is largely due to a single £163m fine imposed on Deutsche Bank AG at the start of the year, and 2017 is still the second lowest year of fines over the past five years.