The City of London needs to up its game to compensate for Brexit losses. That is one reason to welcome Friday’s push for more “RegTech” — regulatory technology — by the Square Mile’s governing body. Technological advances involving data science, machine learning and cloud computing have opened up new approaches to dealing with regulatory riskEU & more.?
The predicted Brexodus of financial assets and jobs is under way. Banks and insurers have transferred ￡900bn of assets, just under 10 per cent of the UK’s total. Staff moves have so far reached 7,400s interactive database., according to consultancy New Financial. It is not all one way. Up to 500 EU-based firms are expected to open a UK office. But the toll on the City is likely to increase in coming years.
Lingering hopes that the UK would be granted more market access in return for an agreement on supervisory “equivalence” have largely faded. That creates an opportunity, as well as a costa measure they both said was designed to protect tens of thousands of essential workers fro. There is some room for manoeuvre.?
The UK wants to make its approach to regulation a competitive advantage. It aims to strike a balance between the EU’s detailed, prescriptive approach and the patchy US one, shown up by the Archegos Capital blow-up. Advocates of RegTech claim that it can play a part by enabling real-time market surveillance and helping to predict where risks will emerge. That could make supervision more preventive and less reactive.?
Copyright © 2011 JIN SHI