The FCA has released its new Data Strategy which outlines plans to develop its data capabilities through a renewed focus on the use of advanced analytics and automation techniques. The FCA hopes this strategy, an update of its 2013 version, will enable it to broaden its understanding of how markets operate and allow it to better predict, monitor and respond to firm and market issues. The FCA also proposes to invest in new ways of working to improve its understanding and use of new technologies. Plans include establishing data science units in certain parts of the FCA’s business and drawing on new opportunities arising from its migration to a cloud-based IT service.
The BoE has published a Discussion Paper aimed at improving the effectiveness of data collection from firms across the financial sector. The paper identifies the issues with the current data collection system, outlines a framework for assessing the issues and sets out several initial possible solutions. Responses to the paper are invited by 7 April 2020. Alongside the paper, the BoE intends to carry out a range of direct stakeholder engagement during the first six months of 2020, which will include some events run in conjunction with the FCA. Anyone interested in participating in such events must complete the BoE’s nomination form by 6 March 2020.
The FCA and the BoE, together with seven regulated firms, have also jointly published a report assessing the viability of the latest Digital Regulatory Reporting (DRR) pilot. DRR aims to explore how technology could allow firms to meet their regulatory reporting requirements more easily and improve the quality of data they provide to the regulator, and transform how the industry understands, interprets and reports regulatory information. Following the report, the FCA and the BoE have agreed to continue working together to:
- carry out joint work on common data standards;
- commission a joint review of the legal implications of writing reporting instructions as code;
- commission a joint independent review of some of the technical solutions explored as part of the DRR pilot; and
- jointly engage with industry to plan future phases.