Regulatory Reporting - the submission of raw or summary data needed by regulators to evaluate a bank's operations and its overall health, thereby determining the status of compliance with applicable regulatory provisions.
In the UK alone, 500,000 scheduled regulatory reports are sent to the FCA annually by regulated institutions. This is just one regulator in one jurisdiction. For a global financial institution supplying this data, creating these reports is often inefficient, highly manual and costly. For regulators receiving this data, digesting and analysing it to meet regulatory objectives and feed into policy-making, the challenges are the same.
The promise of digital technology for streamlining this process is being explored by regulators and regulated firms alike. The UK's regulators - the FCA and the Bank of England - have been at the vanguard of this work – with initiatives such as a ‘proof of concept’ for Digital Regulatory Reporting developed during the November 2017 TechSprint, and currently being developed further during a six month pilot project.
We believe the next step is to understand some of the immediate practical implementation challenges for financial institutions in the adoption of Digital Regulatory Reporting and to develop a realistic and tangible set of best practice activities to reach this ambitious goal.