What does this cover?
On 23 November 2015 the FCA announced that it was seeking "views on how we [the FCA] can support the development and adoption of new technologies that facilitate the delivery of regulatory requirements – so-called ‘RegTech’."
The call for information is a recognition by the FCA that since the financial crisis, firms have had to navigate increased regulatory protocol and control. The FCA believe it important that technological solutions be available to assist firms both financially and practically in the process of meeting compliance obligations and "In order to enable effective competition and promote innovation". Initial investigation into the area by the FCA has resulted in the consultation paper published by the FCA entitled "Supporting the development and adoption of RegTech" which, according to the FCA should appeal to "innovator firms (both authorised firms and new entrants), accelerators, businesses in the finance industry, software firms and technology companies". The FCA's call specifically seeks responses and views on:
- "where RegTech may deliver outcomes that improve efficiency and transparency
- where we [the FCA] should focus our efforts to ensure we best support collaboration between various parties involved and interested in RegTech
- the challenges and risks faced by FinTech firms in providing RegTech to financial services firms and those faced by financial services firms in adopting such
- whether there are existing regulatory rules, policies and guidance which are restricting innovation and the adoption of RegTech solutions"
The FCA have not set a closing date for responses but do advise that a workshop on the topic will take place early in 2016 and stakeholder input will be considered at that event, therefore early input is advised.
To view the call for information paper, please click here.
To take part in the consultation, please click here.
What action could be taken to manage risks that may arise from this development?
Financial service companies may wish to consider providing the FCA with commentary and views on RegTech solutions further to the call for information paper released by the FCA.