Wolters Kluwer is this week taking part in a TechSprint (sometimes referred to as a “hackathon”) organized by the U.K.’s Financial Conduct Authority (FCA). The event, “Unlocking Regulatory Reporting,” is designed to improve the interface between the regulator and regulated firms, allowing participating firms to discuss the practical uses of RegTech. Notably, the finance, risk and reporting technology vendor will act as the Regulatory Reporting Subject Matter Expert for the event.
According to the FCA, “RegTech is a sub-set of FinTech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities.” RegTech systems are being increasingly embraced by banks, as noted in a recent white paper by Wolters Kluwer. RegTech is devoted exclusively to compliance and related issues, such as risk analysis and management. One promising feature of the technology is that it should be able to work with existing systems since RegTech tends to be heavier on software than hardware. Such systems should keep institutions ahead of the game by allowing them to keep track of, and adjust to, new rules as soon as they are implemented.
The FCA TechSprint is the second such event this year and allows the regulator to engage collaboratively with the industry to encourage the development and adoption of solutions that improve regulatory outcomes. This week’s event brings together a cross-section of firms, including financial services providers, consultancies and technology companies, to develop technology ideas to help address the cost, efficiency and effectiveness of regulatory reporting.
“The ability for technology solutions to handle mounting regulatory reporting challenges, in a much more timely manner, is going to be an ongoing challenge for the industry,” says Richard Bennett, EMEA vice president of Regulatory Reporting for Wolters Kluwer’s Finance, Risk & Reporting business. “Accordingly, RegTech systems are being embraced by banks and regulators alike and are occupying an expanding segment of the broader FinTech universe. This week’s event is a truly innovative way of sharing experiences and ideas with our peers and the industry at large. And the opportunity to work collaboratively with the FCA on the subject demonstrates the willingness and commitment of the regulator to convene parties and work with them to assess and solve problems at the regulatory interface.”
The event ultimately hopes to prompt the industry to develop technology solutions to streamline regulatory reporting and improve understanding ofcompliance requirements. It will also serve as a starting point for future more focused work streams led by relevant parties.