The FCA has refreshed its data strategy while the Bank of England has published a discussion paper outlining its plans.
The Financial Conduct Authority (FCA) and Bank of England (BoE) have outlined their plans to develop their data and analytics capabilities.
The FCA’s refreshed data strategy sets out a transformation plan to become a highly data-driven regulator.
It plans to focus on advanced analytics and automation techniques to deepen its understanding of how markets function and allow it to efficiently predict, monitor and respond to firm and market issues.
The Bank of England has published a discussion paper entitled “Transforming data collection from the UK financial sector” which sets outs its aims to improve the timeliness and effectiveness of data collection from firms across the financial system.
Christopher Woolard, executive director of strategy and competition at the FCA, said: “Advances in technology are changing the nature of the firms and markets we regulate.
“Our data strategy provides a clear path for us to ensure we have the necessary skills and processes in place to remain at the forefront of this change.
“In keeping with our mission, a data-driven approach to regulation allows us to anticipate harms before they crystallise, better understand the effect on consumers of changing business models and to regulate an increasing number of firms efficiently and effectively.”
Sam Woods, deputy governor for Prudential Regulation and chief executive of the Prudential Regulation Authority, added: “Having the right data is vital to our role as a regulator, and to the ability of banks and insurers to manage themselves effectively.
“Recent developments in technology should allow us to improve how we collect data from firms, making reporting more timely, more effective and less burdensome for firms.
“This is potentially a major change so we want to work closely with firms to make sure we get it right over the next decade – our discussion paper starts that process by setting out the strategic issues in order to stimulate a debate about the way forward.”
