ESMA RegTech Enhancements


On May 16, ESMA Patrick Armstrong spoke on RegTech enhancements.


  • ESMA has developed framework to analyse financial innovation and impact on consumers.
  • Framework provides principles-based approach to work on range of financial innovations.
  • End-goal of data-driven supervision is to shit from retrospective to forward-looking action.
  • ESMA also acts as a facilitator to encourage digitalization of the entities it interacts with.
  • Works with member state regulators to develop tools to ensure digital delivery of data.
  • The extensive regulatory reforms over the past 10 years are key motivators for RegTech.
  • But firms to be wary to delegate tasks only and not delegate regulatory responsibilities.
  • Firms also face mitigation risks if they do not adapt to newer digitalized infrastructures.

Regulators EU ESMA
Entity Types Bank; BS; CNSM; Depo; Exch; HF; IA; Ins; Pension
Reference Sp, 05/16/2017, Fintech
Functions Risk; Technology
Countries European Union
Products Banking; Insurance; Investment Bank; Pensions; Wealth Mgt
Regions EMEA
Rule Type Guidance
Rule Date 5/16/2017
Effective Date 5/16/2017
Rule Id 32300
Linked to N/A
Report Issue 6/1/2017
Report Section EU

Last substantive update on 05/18/2017