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

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<