Jessica Rusu, FCA's chief data, information and intelligence officer
The FCA is embracing technology to help it be more “user-friendly” by reducing regulatory burdens and adopting a more dynamic approach to supervision and authorisation.
In a speech at TheCityUK International Conference last Thursday, Jessica Rusu, chief data, information and intelligence officer at the FCA, said the regulator was becoming a, “smarter regulator, enabled by smarter systems.”
She said its focus on 'smarter systems' was also supporting growth and innovation.
She said the FCA was utilising technology to help shape the future of financial services by supporting firms to innovate through game-changing tools such as its regulatory 'Sandboxes' and an AI Lab.
She said the regulator was also working closely with Government and industry to realise the benefits of open finance.
Ms Rusu said: “In the last 12 months, technological advancements have profoundly transformed the financial services sector, offering innovation and growth of new business models. Artificial intelligence (AI) has become central to this evolution.”
She praised the FCA’s regulatory sandboxes, saying: “FCA Sandbox firms are 50% more likely to raise funding than their peers and on average raise 15% more in investment. Our Sandboxes make a tangible difference, allowing us to help good ideas move forward with confidence.”
She pointed out that innovation in payments, digital assets, stablecoin, and crypto is moving at lightning pace, particularly in the US.
She said: “Crypto is an inherently global sector, and we must be alive to what other international jurisdictions are doing and learn from them.”
She reported that during the first year of its financial promotion regime, the FCA took down over 900 crypto-related scam websites and issued 1,700 consumer alerts.
Ms Rusu said: “We've been assertive in using our powers to keep firms out of the market where they are unable to meet the minimum standards. And we will continue to work closely with stakeholders across the system to strike the right balance between innovation and consumer protection.”
She emphasised that despite using more technology the regulator has been trying to be more “user-friendly” by cutting down the regulatory burden.
Ms Rusu said: “We are continuing to digitise and simplifying our authorisation forms – based on user research and testing. We are decommissioning legacy data returns to reduce firm reporting burden. And we’re streamlining the Handbook and moving towards a machine-readable version.”
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