Home » FCA commits to more tech investment to boost efficiency and support growth
LONDON, 31st October 2022 – At the Lord Mayor’s City Banquet at Mansion House, Nikhil Rathi, Chief Executive of the Financial Conduct Authority (FCA), delivered a speech on the role of the body in the context of the UK’s changing regulatory landscape.
During his speech, Rathi hailed technology investment as a key factor behind the FCA’s improved efficiency during the last year. Revealing that one in five firms are now initially rejected for authorisation, compared to one in 14 last year, he said significant progress had been made on the FCA’s backlog, thanks to its investment in automation.
Rathi also said that the FCA plans to deploy expanded technology solutions going forward. Meanwhile, it now tests firms’ sanctions controls with big data techniques, scans around 100,000 websites a day to identify scams, and has developed a single view analytics tool to be able to spot where to intervene and when, faster.
As a key point in the speech, Rathi also underlined the FCA’s continuing commitment to maintaining the highest regulatory standards, so the UK can build on its reputation as a global leader that fosters innovation. This is alongside embracing sector growth and competitiveness, aligned to international standards.
Rathi also acknowledged work with the Bank of England, on the use of Artificial Intelligence in the regulatory framework, to examine benefits, risks and suggest solutions. Similarly, the regulator’s paper on Big Tech, released last week, examines the innovation the tech giants could bring to financial services but also explores the risks of their potential dominance.
Dr. Henry Balani, Global Head of Industry and Regulatory Affairs for Encompass Corporation, commented:
“Amidst a turbulent economy and a complicated geopolitical landscape, the UK faces uncertain and challenging times. It is essential that both businesses and the government remain committed to upholding the highest regulatory standards and encouraging innovation as a key component, in order to achieve as much stability and growth as possible – now and in the future.
“In recent months, the FCA has made strides when it comes to helping to improve the regulatory landscape and, ultimately, tackle financial crime, while also supporting businesses through extraordinary times. Despite this, there is still much to be done to further improve the regulatory framework and overall compliance in the UK. As we progress, we must continue to focus on not only regulatory oversight but also on fostering innovation and the use of the latest in technology to assist businesses when it comes to their own compliance processes as the landscape evolves.
During his speech, Nikhil Rathi, Chief Executive of the FCA, said:
“We are always open to simplifying regulation whilst delivering the same outcomes and streamlining our processes without undermining rigour.
“As an independent regulator, we have shown we can act quickly, whether it was in our reaction to Covid, Russia, the rising cost of living and unprecedented market turbulence. It is vital that this independence and agility at speed is not undermined by any proposed call-in power. And while we embrace and embed a secondary mandate for growth, making it a primary mandate would clearly undermine our international standing.”