Context
Nikhil Rathi, the FCA’s Chief Executive, delivered his speech at the Dutch Authority for the Financial Markets (AFM) 20th anniversary seminar.
Key points to note
Highlights include:
- The value of consumer data has soared and we often trade privacy for expediency.
- The FCA has had constructive engagement with Google on promotional adverts of non-regulated firms and more recently with Twitter and are hopeful other technology giants follow.
- Data is the lifeblood of a modern regulator and, in the next five years, the FCA expects to become as much a regulator of data as a financial one.
- While data can help institutions identify risk, it can also entrench bias and make it more difficult for consumers to access loans or products such as insurance.
- International coordination will be increasingly vital with the rise in risk associated with digitalisation and gamification.
- Investment in tech and skills is the key to staying ahead.
The speech is split into six sections:
- The growing value of data
- Progress with tech firms but more work ahead
- AI and algorithms
- The future of regulation
- Data and the AI to help with risk
- The future for regulators
Next actions
None – for information and awareness