Financial Conduct Authority (FCA) CEO Nikhil Rathi delivered a speech last week that reflected upon the ever-changing regulatory environment. Rathi re-affirmed the FCA’s mission of fostering competition stating, “we will continue to embed competitiveness throughout our regulatory approach,” while noting this will not come to the detriment of protection.
Beyond boosting leadership at the UK regulator – attracting over 1000 new colleagues in 2022, Rathi commented on the use of technology to improve upon their job.
Rathi stated:
“We are investing in and deploying technological solutions to make us even more efficient. We now test firms’ sanctions controls with big data techniques, scan around 100,000 websites a day to identify scams, and have developed a single view analytics tool to be able to spot where to intervene and when, faster.”
Adding:
“Our work with the Bank [Bank of England] on the use of Artificial Intelligence [AI] in the regulatory framework examines the benefits and risks and suggests solutions. Please do engage with this and help us craft the right framework for the future.”
Rathi said they are now working more efficiently due to their investment in automation which is reducing their regulatory backlog. He stated they are always open to simplifying regulation and streamlining processes without limiting regulatory rigor.
Dr. Henry Balani, Global Head of Industry and Regulatory Affairs for Encompass Corporation – a Regtech firm, shared a comment on Rathi’s speech noting the UK faces 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.”