I and others have written before about the importance of the TechSprint itself, and the FCA's call for input yesterday is another quiet milestone in how regulators engage with the industry and with the wider Regtech community.
Aside from the cost savings, MDMERR has the potential to vastly improve the effectiveness of regulation, and of firms' own ability to spot and fix problems early, by making regulatory and other reporting vastly more flexible, quicker and more accurate.
To take just one of many examples, in the early 2000s,with CRD II looming, the FSA decided to prioritise capital regulation over liquidity. While only one of many factors, this decision, hard to argue with at the time, contributed to the financial crisis. MDMERR might well have meant the FSA didn't feel the need to choose.
But this only works if the collaborative approach the FCA and Bank of England has so far fostered can be sustained. The FCA's call for input, and decision to open source this work takes this a critical step forwards.
The next stage includes a series of Roundtables on different aspects of the future challenge, some of which Grant Thornton will be co-hosting (more to follow). Good luck to everyone involved!
At the TechSprint, participants successfully developed a ‘proof of concept’ which could make regulatory reporting requirements machine-readable and executable. This means that firms could map the reporting requirements directly to the data that they hold, creating the potential for automated, straight-through processing of regulatory returns.