Following the financial crisis, we recognise that firms have to deal with greater reporting requirements and meet higher regulatory standards.
In order to enable effective competition and promote innovation, it is important that technologies that help firms better manage regulatory requirements and reduce compliance costs are supported.
To this end, the Government announced in its budget that ‘the FCA, working with the PRA, will also identify ways to support the adoption of new technologies to facilitate the delivery of regulatory requirements – so-called “RegTech”’.
Following some initial exploration of this area with a range of stakeholders, we are issuing this Call for Input to seek broader views on how we should progress our RegTech work. We are interested in:
- where RegTech may deliver outcomes that improve efficiency and transparency
- where we 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
Who should read this paper?
This paper will be of particular interest to businesses looking to use FinTech and RegTech for providing financial services. This can include innovator firms (both authorised firms and new entrants), accelerators, businesses in the finance industry, software firms and technology companies.