QA Financial Forum Chicago | 9 April 2024 | BOOK TICKETS
Search
Close this search box.

FCA gives green light to the cloud

flag-1569496876

The FCA has published a paper on guidance for cloud outsourcing. The regulator has confirmed that it does not see any fundamental reason why cloud services cannot be implemented, as long as they are given: “Appropriate consideration, in a manner that complies with our rules.”

According to the FCA, a lack of oversight over outsourced services are a primary source of risk. The FCA said that lack of industry awareness of where data is being stored is a source of potential problems.

The paper goes on to note that firms should have: “A clear and documented business case or rationale in support of the decision to use one or more service providers for the delivery of critical or important operational functions or material outsourcing”.

The FCA has also issued a review on dark pools. The regulator urged dark pool operators to clearly explain to clients the operation and design of their dark pool, including how it interacts with electronic trading systems. The review went on to note that operators need to: “improve the monitoring of their pools – in particular, operational integrity (accuracy of reference pricing, capacity, stability), best execution (where applicable), client preferences, and unwanted trading activity.”

In other regulatory news, the French Autorité des Marchés Financiers (AMF), together with the Autorité de Contrôle Prudentiel et de Résolution (ACPR), has created a committee to look into regulatory issues around financial technology. The group, called the FinTech Forum, is composed of representatives across government and business. Its stated aim is to: “More effectively identify the challenges associated with the development of fintechs” as well as keep regulators informed of any developments in the industry.