ASIC regtech initiative series 2019-20

Additional FY2019–20 regtech initiatives

ASIC developed additional regtech initiatives for FY2019–20 with the nature and scale of these initiatives designed in light of the evolving situation surrounding the novel coronavirus (COVID-19).

ASIC’s Regtech Initiatives 2019-20 report covers observations and findings from the regtech initiatives we conducted throughout the year.  The report outlines that regtech is particularly useful for identifying and, in some cases, assessing indicators of concerning conduct or activities by financial businesses.

The design of these initiatives has been informed by previous regtech projects undertaken during FY2018–19. ASIC’s FY2019-20 regtech initiatives include:

• Remote services and supervision webinar (14 July 2020)
  This webinar was a discussion forum between industry, regulators and guests highlighting regtech’s potential to support the provision and supervision of financial services whilst many staff work remotely.
  The panel included representatives from financial firms and professional service providers.
  Key takeaways included the awareness and acknowledgement that people are at the heart of organisations: customers, employees, investors.
  Rapid mobilisation and flexibility of firms to move to new working environments highlighted adaptation skills while investment in technology was pivotal for successful transitions. View the recording.
• Responsible lending demonstration webinar (20 August 2020)
  A free, public problem-solving event with a curated synthetic data set in which selected regtech providers demonstrated how AI/ML can be used to support a firm’s compliance with responsible lending obligations. The regtech solutions were showcased at a public webinar and was followed by an industry panel discussion. View the recording.
• Financial promotions monitoring tool trial
  A suptech trial leveraging previous regtech projects to support ASIC to detect and identify risk indicators of misconduct with financial promotions targeting and/or exploiting vulnerable consumers, particularly during COVID-19.
• NLP prospectus review
  A first phase application of natural language processing to review prospectus information. ASIC will leverage previous regtech projects and publicly communicate its experience.
• Voice analytics phase two project
  A suptech trial leveraging previous regtech projects to build ASIC's voice analytics capability, supporting ASIC with enhanced supervision and enforcement investigation.
• NLP data flow automation and document scoring
  Proof-of-concept projects seeking productivity improvements for our internal business teams through automation of data flows and prioritisation of advanced decision-making.
• Licensing TAG tool phase two
  Continuing from phase one, the Technology Assisted Guidance Tool is now undergoing testing in an internal environment.

Deferred planned FY2019–20 initiatives

ASIC has deferred the planned FY2019–20 initiatives on the following topics due to the impacts of COVID-19:

• Digital record-keeping of financial services
  A landscape report to look at current and potential future practices for financial services providers’ digital record keeping.
• Digital financial reporting of public companies
  A public event to promote the benefits of the adoption of structured financial reporting by presenting case studies of organisations that have successful adopted the technology for their statutory financial reporting.
  
• Non-financial risk tools/applications for the use by boards and executives
  A public problem-solving event with selected Regtech providers along with panel discussion on the potential for Regtech to assist boards and senior executives in identifying and overseeing non-financial risk.

For more information email regtech@asic.gov.au.