Regtech
Produced in partnership with Sam Robinson and Yasmin Johal of CMS
Regtech

The following Financial Services practice note produced in partnership with Sam Robinson and Yasmin Johal of CMS provides comprehensive and up to date legal information covering:

  • Regtech
  • What is regtech?
  • The FCA’s approach
  • FCA TechSprints
  • Digital sandbox
  • Other regulator-side developments
  • Towards a Robo Handbook
  • Industry-side developments
  • AML and KYC
  • Fraud prevention and transaction monitoring
  • More...

This Practice Note considers the following aspects of the technology that has become known as ‘regtech’:

  1. What is regtech?

  2. The FCA’s approach

  3. FCA TechSprints

  4. Digital sandbox

  5. Other regulator-side developments

  6. Towards a Robo Handbook

  7. Industry-side developments

  8. Other initiatives

What is regtech?

Regtech is a loose term used to describe the application of technology to assist firms in meeting their regulatory obligations efficiently and effectively, in a way that legacy systems cannot (and, in some cases, also to describe the application of technology by regulators to assist them in meeting their regulatory obligations). The term is variously used in contrast to, or as a subset, of fintech. For more on other fintech concepts, see: Fintech—overview.

For the purposes of this Practice Note, the term ‘regtech’ is used to describe the use of technology to assist firms in meeting their regulatory obligations, and the term ‘fintech’ is used to describe the use of technology to deliver (or assist in delivering) regulated financial services.

While regtech is not a new concept, innovations in this area that automate regulatory and compliance processes have potential benefits for both regulators and firms, in particular for data reporting and analysis, making regulation cheaper and compliance simpler. Developments in this area have arisen from the implementation of MiFID II across the EU. Additionally, the UK government, in its fintech strategy, announced the launch of robo-regulation pilot schemes

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