Balanced approach
Bailey spoke about two “very big points” that should guide the regulator’s approach.
“The first is all about rules and expectations. This is important, not least to encourage innovation. But, I think we do need to strike the right balance here between enabling change and having a predictable and clear framework of rules. It is vital that everyone knows the rules of the game, and then everyone sticks to them.”
He added that they should, as far as possible, be internationally agreed and implemented.
“The second key point concerns our use of technology. If ever there was an area that strikes me as ripe for applying technology to harness the power of big data alongside distributed ledger technologies to produce better outcomes, while rationalising the process and cutting costs, it is financial crime. This is an area that generates vast amounts of reporting.
“Yet the pace of innovation in, for instance, automated text analysis, surely puts us on the cusp of real progress. We can’t stay on the cusp for too long, and here as authorities we should play a role to enable change to happen, because doing so will help us advance our objectives.”
Crime fighting priority
“Fighting financial crime has been, and continues to be, a high priority for the FCA. Whatever the progress, we do not intend to reduce our focus on financial crime, particularly given the evolving risks that exist and the level of public interest in ensuring the cleanliness of financial services,” Bailey said.
