Reuters
Published Apr 16, 2021 00:05
Updated Apr 16, 2021 00:15
LONDON (Reuters) - Britain's financial firms and regulators should step up the use of technology to cut the cost of compliance and make the City of London more globally competitive, a report said on Friday.
The report from the corporation that runs London's "Square (NYSE:SQ) Mile" financial district called for the removal of barriers to engineer a "paradigm shift" in the use of "RegTech".
RegTech refers to the emerging use of technology to streamline and cut compliance costs at financial firms, such as for reporting data on market transactions to regulators and spotting crime.
Its use is being held back by long procurement cycles, slow decision making inside firms, lack of awareness about RegTech, constraints from existing technology, and lack of funds, the report said.
"We are calling for more to be done to support the sector to grow and thrive, strengthening London's global competitive offer and benefiting the wider UK economy," Catherine McGuinness, head of the City of London Corporation, said.
The annual cost of compliance for Britain's top five banks could be cut by at least 0.05%, or a combined 523 million pounds ($720.48 million), by greater use of RegTech, the report said.
Regulators should be even more pro-active in encouraging the use of RegTech, the report said. "RegTech should become a regular topic of conversation between regulated firms and supervisors."
($1 = 0.7259 pounds)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.