Regulators are failing on technology, said Andrew Milne, head of wealth client services at GPP, commenting on the closing of the FCA consultation and on using technology to achieve smarter regulatory reporting.
Mr Milne said: “The FCA consultation raises a critical issue given the rocky start to MiFID II reporting this year. The amount of data to report across the industry has increased tenfold, and combined with the barriers of both out-of-date systems and tight time constraints, there is no solution to move forward other than standardised, efficient technology across the board.
“We have seen firms spend considerable sums upgrading their reporting systems with the latest tech available, but surprisingly it has been the regulator that has not held up its end of the bargain, unable to process all of the data being received. While it is true that some firms are yet to implement the necessary compliance procedures, this is clearly not a situation conducive to strict and proper oversight."
He continued: “One of the biggest challenges to the utilisation of regulation tech will be the removal of age-old business processes. Prior to MiFID, firms were under no pressure to modernise their procedures, but the changes enforced in January brought a perfect storm: monumental change on a tight timeframe.
“MiFID II was years in the making, but regulators only announced certain requirements just months ahead of the deadline. Now we are in a position where many firms are both scared and out of depth with much of what is being asked of them."
Mr Milne concluded: “It is hard to imagine the industry taking new tech under its wing with this anxious mentality. The regulators could be supporting the process more by giving clearer objectives and more attainable timelines.”
Founded in 2008 GPP launched as a custody and clearing services provider. Since then it says it has "developed by adding a full prime brokerage offering, targeting small and mid-sized hedge funds looking for seamless technology while being supported by a tailored service."