ASIC embraces regtech, conducts natural language processing trials

Maria Nikolova

The Australian regulator believes what it is doing now marks the starting point of an evolving approach to regtech.

The Australian Securities and Investments Commission (ASIC) is diving deeper into the realm of new technologies, In a speech delivered today, ASIC Commissioner John Price said the regulator was conducting regtech trials, in particular, natural language processing trials.

In February this year ASIC released a set of problem statements with use cases to understand and encourage the application of natural language processing (NLP) in resolving regulatory problems. The trials aim to explore potential efficiencies in supervision, including through automation and prediction. These experiments offer “a genuine learning opportunity for ASIC”, Mr Price said.

A tender was issued for the provision of pilots in the areas of:

  • the advertisement and promotion of financial and credit services;
  • phone sales of insurance; 
  • managed fund PDS review;
  • financial advice file review;
  • financial reporting review of company announcements, and
  • prospectus review.

Mr Price said ASIC received approximately 30 applications and that the regulator was in the process of meeting with a number of those solution providers.

“Our intention is to land on a set of trials in the coming few weeks and conduct them this year”, he said.

Although regtech is not something that ASIC regulates directly, it is something the regulator is keenly interested in. Especially given that regtech is already a core element of risk and compliance frameworks for some parts of the Australian financial system, such as the monitoring of financial markets activity. The range of application of regtech is rapidly evolving, and is now extending to a variety of areas to assist businesses in meeting their regulatory obligations.

In March 2015, ASIC launched an Innovation Hub to help fintech businesses navigate the regulatory system without compromising investor and financial consumer trust and confidence. The Innovation Hub helps fintech businesses by providing access to senior staff at ASIC to streamline licensing processes and offering informal guidance to help bridge any knowledge and resourcing gaps.

In mid-2016, ASIC expanded the scope of the Hub to include engagement with the regtech sector. This work has included hosting and attending regtech events, including the Regtech Roundtable and Showcase events, as well as the new Regtech Liaison Forum. Since announcing its interest in regtech, ASIC has had over 60 meetings with regtech stakeholders and service providers to discuss their developments.

Read this next

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

Industry News

Broadridge launches ESG reporting solution ahead of European regulation SFDR

The Broadridge managed solution for EET adds to existing Broadridge services, including European PRIIPs Template, European MiFID Template, Solvency II Tripartite Template and many more across the European jurisdictions.

Industry News

iCapital to acquire embedded structured investment platform SIMON

SIMON’s platform, SPECTRUM, is a multi-dimensional allocation analysis and portfolio construction tool designed to evaluate how structured investments and/or annuities may fit into a portfolio. 

<