Technology plays a fundamental and increasingly pivotal role in delivering innovative financial products and services. The FCA is committed to fostering innovation and technology—including RegTech—to promote effective competition in the interests of consumers.
In October 2014, we launched Project Innovate to encourage new innovation in financial services markets. By providing direct support to individual innovators we are able to foster innovative firms and guide them through the regulatory landscape.
Building on this success, in the first half of 2015, we started to explore how regulatory requirements and technology could come together through RegTech. This was in line with both the Government Office for Science review on how to support growth and development of the UK’s FinTech market (the FinTech Futures Report) and the call for regulators to engage with RegTech by the Chancellor in the March 2015 Budget.
We issued the RegTech Call for Input (CFI) in November 2015 to seek broader views on how we should progress and prioritise our RegTech work. The high level of interest in RegTech and importance to the market was demonstrated by the outstanding level of interest and quality of the responses.
We have listened to those responses and they have informed how we think about RegTech strategically, what approach we will take and which activities we should prioritise.
In this Feedback Statement we summarise the responses we have received to the questions set out in the Call for Input and outline our approach for 2016/17.