The Financial Conduct Authority (FCA) wants to know why technology providers are failing to develop and providers and advisers won’t adopt registration technology following the financial crisis.
The call for information came about after the FCA recognised that firms are having to deal with ‘greater reporting requirements’ and are required to meet ‘higher regulatory standards’.
Working with the PRA, the government has requested the FCA will work to ‘identify ways to support the adoption of new technologies to help firms manage regulatory requirements and reduce compliance costs.’
This adoption of new technologies to aid the delivery of regulatory requirements will be known as ‘RegTech’.
Hamish Purdey, chief executive of software provider Intellio, said anything that helps advisers streamline their business has to be a good thing.
He said: “We already have tools in our intelligent office software that are designed to mitigate the time it takes to deal with regulatory reporting, including RMAR and we are always looking at ways we can speed up processes for the maximum benefit of our clients.”
The FCA has announced it is particularly interested in the challenges and risks faced by FinTech firms in providing registration technology to financial services firms.
The paper is targeted mainly towards those who are looking to use FinTech and RegTech to provide financial services including innovator firms (both authorised firms and new entrants), accelerators, businesses in the finance industry, software firms and technology companies.
According to a preliminary report brought out by the FCA based on initial investigations and recommendations made in the FinTech Futures report, the FCA identified some key areas that they felt they could become involved in to support the adoption of what they call RegTech.
Among these suggestions are the provision of regulatory expertise and addressing barriers to entry, innovation, and adoption.