EBA proposes a register of RegTech firms
The European Banking Authority (EBA) has published an analysis of the current RegTech landscape in the EU. The Report assesses the overall benefits and challenges faced by financial institutions and RegTech providers in the use of RegTech.
The European Banking Authority (EBA) has published an analysis of the current RegTech landscape in the EU. The Report assesses the overall benefits and challenges faced by financial institutions and RegTech providers in the use of RegTech. It also identifies potential risks arising from RegTech solutions that supervisors will need to address and proposes actions designed to enhance knowledge and skills in competent authorities. These actions also aim to ensure technological neutrality in regulatory and supervisory approaches to RegTech, whilst addressing any inadvertent obstacles within the Single Market to facilitate the adoption of RegTech across the EU. One of the recommendations is the possibility of a register of RegTech firms.
An excerpt from the report
"In the longer term, additional actions, such as the creation of a centralised EU database of RegTech solutions or a potential certification of RegTech (as suggested and preferred in particular by RegTech providers and some FIs) could be further explored and considered at the EU, together with an evaluation of who would be the best placed to implement such solutions. Having a RegTech database may serve as a tool to share information about available RegTech solutions (e.g. description, status of adoption by FIs, RegTech providers offering service, etc.).
In addition, building on accumulated experience, potential certification of RegTech to showcase compliance with the regulatory requirements within specific market segments could be assessed. An in‐depth study would need to be conducted to identify: i) priority areas in which RegTech providers or solutions could be certified, ii) clear legal basis or reference standards that RegTech solutions could be assessed against, iii) potential stakeholders to be involved in the certification process, and to address any other operational aspects.
Currently neither of those two options are within the current mandate and focus of the EBA."
Download the full pdf below or see the source of the report here.