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4.3.3 INTEGRATING DATA AND TECHNOLOGY ACROSS THE REGULATORY VALUE CHAIN
The digital transformation is not only changing how businesses operate, but how regulators perform their regulatory functions. Greater use of data and technology will continue to reshape how regulators interact with their regulated entities as well as how regulators go about understanding and regulating new techniques adopted within their respective markets. The growth in data has also changed how regulators collect, store and use data to perform their regulatory functions. Increasingly, regulators are adopting advanced analytics to sharpen their regulatory focus and efficiency.
This section discusses the role of SupTech in enhancing the SC’s regulatory efficiency and effectiveness. This has become increasingly pertinent, as the nation moves forward with its digital agenda. To regulate an increasingly digital capital market, the SC will need to expand its use of data and technology. This will also complement the adoption of RegTech within the industry. The use of RegTech and SupTech will enable both market participants and the SC to collect and harness more data to generate insights that will benefit the broader industry. The promotion of better risk management through RegTech will also complement the SC’s SupTech efforts in predictive supervision.
Data and technology will be key enablers to support the SC’s vision of becoming more principles-based and outcomes-focused. In line with this, the SC will be crafting its technology and analytics roadmap to enable the desired outcomes as outlined in Diagram 25.
Diagram 25
THE SC’S DIGITAL-ENABLER OBJECTIVES WILL BENEFIT CAPITAL MARKET PARTICIPANTS
Benefits to the capital market
Better engagement with market participants
More accurate risk assessments
Pre-emptive actions to contain losses
Reduce regulatory costs
SC’s digital-enabler objectives
Optimise engagements with stakeholders
Improve market transparency
Enhance predictive capabilities
Elevate efficiency with automation
Digitise interfaces to streamline engagement with regulated entities and investors
Improve data quality, quantity and accessibility for market participants and investors
Leverage data and technology across regulatory functions to support decision-making
Automate workflows, including real-time alerts, reporting and data visualisation, to realise efficiency gains
Source: SC.
108 SECURITIES COMMISSION MALAYSIA