The UK Financial Conduct Authority defines RegTech as “a sub-set of FinTech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities”. In November 2015, the FCA asked for views on how it should progress and prioritise its RegTech work. It received more than 350 responses from established financial services firms, technology suppliers and FinTech start-ups and the FCA also convened roundtable meetings. The feedback statement was released on 20 July.
The main themes that emerged concerned technology that:
- allows more efficient methods of sharing information
- drives efficiencies by closing the gap between intention and interpretation
- simplifies data, allows better decision making and the creation of adaptive automation
- allows regulation and compliance processes to be looked at differently
The feedback also considered the role that the FCA should play, the blockers to innovation, the general barriers to RegTech adoption and which rules or policies would help. There was a desire for the FCA to play an active role in RegTech and to help develop technology standards and guidance. In addition to promoting innovation, the FCA wants to promote effective competition in the interests of consumers.
For the full FCA Feedback Statement, please click here.