ASIC is ramping up its focus on regulatory technology (RegTech).
On Friday 26 May 2017, ASIC released its Report 523 titled “ASIC’s Innovation Hub and our approach to regulatory technology”. This report gives an update on the work of ASIC’s Innovation Hub and outlines ASIC’s current and proposed future approach to RegTech.
The report defines RegTech as the use of new technologies to solve regulatory and compliance requirements more effectively and efficiently. These technologies could include use of artificial intelligence, natural language processing, data reporting, regulatory codification and big data analysis technologies.
RegTech has been on ASIC’s radar since 2016 when the Innovation Hub was expanded to include engagement with the RegTech sector. Currently, ASIC’s RegTech initiatives include providing informal assistance to RegTech businesses through the Innovation Hub, mechanisms to refer RegTech providers to other international regulators’ FinRech assistance programs, engagement at meetings and other events and holding technology trials.
The report proposes that ASIC increase its focus on supporting RegTech developers, including by:
- establishing a new RegTech liaison group comprising industry, technology firms, academics, consultancies, regulators and consumer bodies to enable networking, discussion of RegTech developments and collaboration opportunities that promote positive applications of RegTech;
- continuing to hold RegTech trials and sharing knowledge about those trials with the market to promote wider use of technologies that promote good consumer and market integrity outcomes; and
- hosting a problem-solving event (“hackathon”) later in 2017 to stimulate thinking and approaches to deal with problems of regulation commonly faced by the financial services sector.