Digital regulatory reporting

We are exploring how technology could make it easier for firms to meet their regulatory reporting requirements and improve the quality of information they provide.

One of the key areas of technology we are focusing on is possible solutions to the increasing challenges financial institutions face in complying with their regulatory reporting obligations.

Together with the Bank of England, we are exploring how we can use technology to link regulation, compliance procedures, and firms’ policies and standards together with firms’ transactional applications and databases. 

If successful, this opens up the possibility of a model driven and machine readable regulatory environment that could transform and fundamentally change how the financial services industry understands, interprets and then reports regulatory information. We are calling this project ‘Digital Regulatory Reporting’.

Work programme ​​​​​​

In November 2017, the FCA and the Bank of England held a two-week TechSprint to examine how technology can make the current system of regulatory reporting more accurate, efficient and consistent.

At the TechSprint, participants successfully developed a ‘proof of concept’ which could make regulatory reporting requirements machine readable and executable.

This means that firms would be able to map their regulatory requirements directly to the data that they hold, creating the potential for automated, straight-through-processing of regulatory returns.

This would benefit both firms and regulators. For example, the accuracy of data submissions could be improved and their costs reduced, changes to regulatory requirements could be implemented more quickly, and a reduction in compliance costs could lower barriers to entry and promote competition.  

In February we published a Call for Input outlining the technical steps that developed this proof of concept and asking for views on how we can improve this process. We are also seeking feedback on some of the broader issues surrounding the role technology can play in regulatory reporting.  

In Q3 2018 we will publish a feedback statement bringing together the results of the Call for Input and industry discussions.

Please email [email protected] with any queries or comments. 

Pilot

In addition to publishing the Call for Input, we are also working with the Bank of England and various organisations (listed below) on a 6 month pilot to build upon the proof of concept. The purpose of the pilot will be to evaluate the feasibility of scaling the work from the TechSprint. The pilot will consider two use cases, one focused on retail reporting and one focused on wholesale reporting. For more information you can read the Terms of Reference for the pilot.

Any financial services firm that wishes to participate in the pilot will need to contribute to the resourcing of them.

However, transparency is an integral part of the pilot and we welcome and encourage input from across the industry. All findings from the pilot will be published and the intended output will be open source. We will provide opportunities for firms to provide feedback on the direction of the pilot as it progresses. Pilot updates will be made available after each meeting of the Steering Committee. For further information, including on how to participate in the pilot, please email [email protected]

We will be holding two open demonstration and Q&A sessions to provide attendees with an opportunity to understand the technological, governance and legal decisions made throughout the pilot, and allow an opportunity to critique and review the work. The open days will be held on 22 August and 9 November. Please email [email protected] if you would like to attend either session. 

Pilot participants

Barclays

Nationwide

Credit Suisse

NatWest

Santander

University College Cork

University College London

Lloyds Banking Group