The FCA has launched a call for input, requesting information pertaining to the application of technological advances, and their potential to ease the process of regulatory reporting on firms. The call will remain open until June 20, 2018.
FCA in Action
The statement further elaborated that as part of ongoing efforts to improve the overall process of reporting to the FCA, it sometimes conducts ‘tech sprints’, which bring together providers of both technology and financial services, in an effort to come up with solutions to some of the industry’s challenges.
The FCA recently held such an event in November of last year, during which some participating members were able to successfully create a proof of concept regarding the automation of regulatory reports.
Benefits of Call for Input
The PoC illustrated that by implementing appropriate technology, machines could accurately read and execute the reports automatically, dramatically reducing the time, cost, and effort of firms in the process of adhering to regulatory reporting requirements.
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The benefits of applying technological solutions to the reporting process are plentiful. The use of machines to process the reports could eliminate the potential for human error. Once the technology is enhanced, the reports would likely be more accurate.
Moreover, any changes required by the FCA could also be adapted more quickly. Once the changes in the variables are applied to the technology, the system could run the modified requirements faster, and with a much shorter adjustment period.
Finally, technological innovations and their application to the regulatory reporting process, could cut costs significantly, thereby “lowering barriers to entry”, and increasing the appeal of becoming a market participant. If the aforementioned benefits do lead to the advent of new firms, it could lead to increased competition, which in turn benefits end clients and users.
In addition to its processing of regulatory reports and filings, the FCA remains active in its agenda of limiting unlawful activity in the UK’s financial sector.