The Financial Conduct Authority (FCA) and the Bank of England recently outlined their plans to develop their data and analytics capabilities.
Both authorities depend on access to high-quality data to maintain monetary and financial stability, market integrity, effective competition and consumer protection.
The FCA’s refreshed Data Strategy sets out a transformation plan to become a highly data-driven regulator. The strategy outlines the organisation’s increased focus on the use of advanced analytics and automation techniques to deepen its understanding of how markets function and allow the FCA to efficiently predict, monitor and respond to firm and market issues.
The Bank of England has published a Discussion Paper (DP), Transforming data collection from the UK financial sector, to improve the timeliness and effectiveness of data collection from firms across the financial system.
In addition, the FCA, the Bank of England and seven regulated firms have jointly published a Viability Assessment report on the latest Digital Regulatory Reporting (DRR) pilot. DRR will potentially allow firms to automatically supply data requested by the regulators, thereby reducing the cost of collection, improving data quality and reducing the burden of data supply on the industry. Following this report, the Bank of England and FCA have committed to continue to collaborate closely while engaging with industry and planning future phases.
