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The SC will build on ongoing efforts to pursue greater digitisation to optimise engagements with stakeholders. Functionalities of existing platforms such as the ComRep, the Electronic Licensing Application (ELA) and the LOLA Online Submission System, will be expanded to cover a wider range of regulatory submissions and enhanced with more dynamic capabilities. Moving forward, the SC will also prioritise the digitisation of stakeholder touchpoints that are manual or require multiple hardcopy submissions.
To improve market transparency, greater sharing of market information will be pertinent. This would entail enhancements to the type of information shared to the public and the technologies underpinning how such information is shared. For example, APIs have been used by some regulators to enable the direct integration of data with applications used by investors and intermediaries. In some jurisdictions, technologies such as chatbots and machine-readable regulations are being developed to help investors and intermediaries navigate through regulatory documents and processes more efficiently. These technologies will be explored by the SC to help deliver greater transparency outcomes and better engagements with the industry.
As the SC’s supervisory scope widens and the number and types of intermediaries increases, traditional sampling methods will also become less effective. In this regard, technology can be used to analyse data more effectively to better identify high risk areas within the capital market. Technologies to analyse larger volumes and wider sources of data, including those from non-traditional sources, may be used to generate insights into areas such as misconduct analysis, market and corporate surveillance as well as systemic risk monitoring. These technologies may also be used to enhance existing or new methods of supervision and provide oversight over regulatory areas which were not previously possible using traditional methods. In addition, models may also be developed to identify areas with higher risks of misconduct in the market, enabling pre-emptive actions to be taken to reduce risks in those areas and contain potential losses.
The SC will also continue to automate regulatory workflows to realise greater operational efficiencies. Regulatory activities that are more procedural in nature and require repetitive manual labour, such as creating reports and generating alerts for further investigation, may be automated through algorithms and robotic process automation20. This will not only eliminate the risk of human error and enable faster outputs, but also free up supervisory resources to focus on higher-value supervisory activities in areas which require qualitative judgement and engagements with intermediaries.
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, and how regulators go about understanding and regulating new techniques adopted
within their respective markets.
Robotic process automation enables machines to record tasks performed by humans on their computers, to be replicated and
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executed without human intervention.
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