On 12 August 2020, the European Banking Authority (EBA) launched a Regtech industry survey inviting all relevant stakeholders, such as financial institutions and ICT third party providers, to share their views and experiences on the use of RegTech solutions, on a best effort basis (available here). Answers are expected by 30 September 2020.

This industry survey is part of the EBA mandate to promote supervisory convergence and facilitate entry into the market of actors or products relying on technological innovation, in particular through the exchange of information and best practices (Article 31 of the EBA Founding Regulation (EU) No 1093/2010). In this context, the EBA identified RegTech as an area to be explored and better understood, by taking into account the associated risks and opportunities. This survey is also part of the EBA’s work program on financial innovation.

RegTech is defined by the EBA as: “any range of applications of technology-enabled innovation for regulatory, compliance and reporting requirements implemented by a regulated institution (with or without the assistance of ICT third party providers)”. The survey only focuses on RegTech solutions and other applications such as applications for enhancing internal processes are not included in this survey.

Purposes of this survey

In particular, the aims of this RegTech industry survey include:

  • mapping and understanding the existing RegTech reporting solutions available from a technological/innovation perspective, with a view of sharing knowledge across both industry and competent authorities;

  • identifying the main barriers for the uptake of RegTech solutions; and

  • stock taking on the potential initiatives to support the uptake of RegTech solutions.
How to complete this Regtech industry survey?

In order to collect industry feedback, the EBA has prepared two separate questionnaires. One is to be completed by financial institutions, and the other one by ICT third party providers. The questionnaires are available via the following links:

As mentioned above, these questionnaires will have to be answered and submitted online before 30 September 2020 in accordance with the instructions provided by the EBA on its website (click here). The respondents are invited to complete one questionnaire for each solution.

The responses to the surveys will not be published on a stand-alone basis, but will be only referred to in an aggregate form, in compliance with confidentiality requirements.

The questionnaires are composed of a general section allowing information to be obtained on the various existing RegTech solutions and a more focused section divided into four specific areas:

  • anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) – on going monitoring of the business relationship and/or transaction monitoring,

  • credit worthiness assessment,

  • compliance with security requirements and standards (information security, cybersecurity, payment services),

  • supervisory reporting.
Next steps

After reviewing the responses to the surveys, the EBA reserves the right to carry out more in-depth investigations by setting up follow-up interviews with some financial institutions and ICT third party providers.

The EBA expects to report on the use of RegTech solutions in the first half of 2021.

The results of this RegTech industry survey will inform the EBA’s work, with the aim of building and sharing knowledge on RegTech and, where relevant, providing recommendations.

Should you have any questions about the above, please do not hesitate to contact one of the members of the Bird & Bird global payments team.

If you would like to receive our regular Payments alerts in your inbox, click here.

If you would like to read Bird & Bird’s previous alerts, please check out our Payments In Focus webpage here.

 

Authors