FCA – Using Technology to Achieve Smarter Regulatory Reporting
The FCA have issued a ‘Call for Input: Using technology to achieve smarter regulatory reporting’.
The FCA are interested in understanding how technology and software solutions can make it easier for firms to meet regulatory reporting requirements and to drive up the quality of data that firms are submitting.
We are delighted to see the FCA proactively embracing the benefits that technology and software solutions can bring to firms. This chimes with our ethos, which for many years has been to help our clients move from the over reliance on manual processes and spreadsheets, to a controllable environment so that data is managed in a much more efficient and effective manner. Through our expertise in financial controls and data management, we help firms have confidence in their regulatory reporting, the result being more accurate, consistent and efficient regulatory reporting.
AutoRek will be responding to the FCA’s call to input, as well as participating in the upcoming roundtables. Indeed, we met with the FCA’s RegTech team at their offices in Canary Wharf at the end of January 2018. The RegTech team have a particular interest in working with those involved in developing technologies to improve regulatory reporting and data sharing – both between firms, regulated firms and the regulator – and in making their handbook more accessible.
The FCA established the RegTech team to build its understanding of what is available to firms, so that the FCA can promote the use of technology. The key message we gave the RegTech team is that AutoRek enhances firms’ regulatory compliance outcomes and addresses common issues that are seen in the financial services sector – typically, financial control and data management issues arising from the reliance on manual processes and spreadsheets.
We have seen in the market many times firms who have attracted attention from the regulator due to poor controls, often spreadsheet based, that are unable to evidence an understanding of their data to the level of granularity expected by both the regulator and indeed the audit community. By adopting an automated approach, firms can relieve themselves of the heavy lifting and inevitable cost burden that more regulation brings.
Christopher Woolard, FCA’s executive director of strategy and competition, sums it up very well by saying: “Technology is a powerful shaper of financial regulation, able to make compliance more simple and more efficient”. We whole heartedly agree, and it’s not just firms who have to analyse large amounts of data, the FCA themselves receive over half a million regulatory and adhoc reports from firms each year.