Our work approach continues to evolve as we keep pace with the industry and develop innovative practices ourselves.
Through our call for input, demos and TechSprints, we identified four important areas of focus.
We have built on these areas to help develop a number of proofs of concept (PoC) that could fundamentally change how firms report regulatory information.
Efficiency and collaboration
- Modernising the Handbook – Using Semantics of Business Vocabulary and Business Rules (SBVR) and Natural Language Processing (NLP) to create machine readable versions of the Handbook.
- Model Driven Regulation – Exploring the use of semantics and triples (a statement in subject/predicate/object form) in order to map and translate multiple internal and external data ontologies from different domains into a universal format.
- Digital Regulatory Reporting – Building on the above two PoCs to link regulation (the FCA/PRA handbooks), compliance procedures, databases and data standards together into a universal machine readable format. Further information on digital regulatory reporting.
- Improving Employee Security – Working with CybSafe to blend behavioural modelling software with psychology and behaviour change theory in order to measure and improve personnel security within financial services organisations.
Integration, Standards and Understanding
- MITOC/ISDA – A standardised model for expressing data and processes with the aim of expressing transactions as collections of economic features and trade events.
- RegHome – Creating a platform for intra-bank knowledge exchange on regulatory related matters. Adopting a Wiki style approach aims to enable the sharing of best practices and knowledge to be crowd sourced.
- ITRAC - Exploring the possibility of a banking industry key global IT risk and controls framework assisting to resolve key challenges in leveraging new technology.
Predict, learn and simplify
- Intelligent Regulatory Assistant – an intelligent assistant that acts as a regulatory lawyer, and interacts with a client to attempt to populate the Authorisation forms for regulatory approval.
- Intelligent Regulatory Advisor – an intelligent (Robo-advisor) front-end to a regulatory handbook that guides an applicant through the authorisations process by providing basic automated advice.
- Ascent Experiment - Working with Commonwealth Bank of Australia, ING and Pinsent Masons to test the possibilities of using NLP (Natural Language Processing) and Artificial Intelligence (AI) technologies to interpret Markets in Financial Instruments Directive II (MiFiD-II) regulations, and automatically build and manage a compliance programme.
- BARAC - Investigates the possibility of using blockchain technology for automating regulation and compliance.
- SmartReg - TechSprint partners UCL and Santander are working on a project to use smart contract and distributed ledger technology to allow the FCA to verify compliance.
- Project Maison - We worked with R3, RBS and another global bank to explore the possibility of using distributed ledger technology for regulatory reporting. The first stage of this programme was successful and will be used to inform the wider BARAC initiative.
How to get involved
Find out more about how we collaborate and what we can and can’t do to support new technology and ideas.