In a speech delivered today, the
Financial Conduct Authority's (FCA) Chief Executive announced the regulator's
plans to examine how Big Tech firms' unique access to large sets
of data could unlock better products, more competitive prices and
wider choice for consumers and
businesses.
The speech at a Digital Regulation
Cooperation Forum (DRCF) event outlined Nikhil Rathi's focus on
Big Tech as Chair of the DRCF, as well as the FCA's response to
the Government's White Paper on Artificial Intelligence (AI),
also published today.
The FCA's Big Tech plans are included
today in a feedback statement to its call for input on data
sharing between Big Tech and financial services firms. Currently,
Big Tech firms can access financial services data through Open
Banking but are not required to share their data with the
financial industry.
, Chief Executive at the FCA
said:
‘Big Tech's growing emergence in
financial services has already made life easier for consumers,
but it is still unclear how valuable their data will become in
financial markets.
‘That's why we want to work with Big
Tech to examine how their data could be most helpful for
financial firms and their customers in future, and to ensure
competition evolves effectively.'
If the FCA's analysis finds Big Tech
data is valuable in financial services, it will look to
incentivise more data sharing between Big Tech and financial
firms through its Open Banking and broader Open Finance work. If
it finds potential risk or harms from non-sharing of data it will
also look to develop proposals for the Competition and Markets
Authority (CMA) to consider when they are given powers to
regulate designated firms' digital and data conduct, expected via
the Digital Markets, Competition and Consumers (DMCC)
Bill.
It also continues joint work with the
Bank of England and the Prudential Regulation Authority (PRA) on
the role of critical third parties (CTPs) and artificial
intelligence (AI).
Today the DRCF has also launched the
AI and Digital Hub, a collaboration between regulators that
enables innovators to get advice on issues that cross more than
one DRCF regulator's remit.
Notes to
Editors
-
Read Nikhil's Rathi's speech.
-
Read the FCA's response to the Government's
White Paper on Artificial
Intelligence
-
Read the FCA's Feedback Statement
on Big Tech in financial services
-
The Data Protection and Digital Information (DPDI)
Bill, expected to be
given royal assent in Spring 2024, will facilitate private
sector data sharing across the economy and aims to drive
cross-sector data driven
innovation.
-
Provisions in the Digital Markets, Competition and Consumers (DMCC)
Bill are expected to
enable the CMA to impose conduct requirements on firms
designated with Strategic Market Status (SMS) in respect to a
digital activity, including to regulate the use of data where
appropriate.
-
The DCRF aims to
ensure a greater level of cooperation between regulators (FCA,
CMA, ICO, Ofcom) given the unique challenges posed by
regulation of online platforms. Nikhil Rathi is the current
Chair of the DCRF.