FCA Implementing Transaction Reporting
The 2019 Trade and Transaction Reporting Conference in London, England shed some light on the future of transaction reporting. The Financial Conduct Authority laid out specific regulation that potentially could be implemented in the coming months. This new regulation focuses primarily on investigations and surveillance of transactions.
The Financial Conduct Authority closely monitors the data it obtains from companies that submit the “Error and Omissions Notification Form”. However, out of the 1335 companies in Britain, only 384 how submitted this form. This has prompted the London-established regulator to undertake new exercises that would promote more firms to submit the form. This would alleviate any questions the regulator has on a firms control over transactions.
This year alone has seen only 405 Firms have downloaded the PDF transaction report from the Financial Conduct Authority webpage. However, the FCA will now be using their analytical tools to investigate the reporting errors of the firms that don’t submit forms. Currently, this investigation unit is looking at over 130 firms.
This is the first time that the FCA has been so forward with firms about transaction reporting, especially when compared to other regulators across the globe. However, it looks like this is all about the change for 951 firms across Britain.
Traction FinTech Tackling Reporting Challenges
There are a few firms that want to get ahead of the upcoming implementation of fines, like Traction FinTech. The company is looking into their process for client acquisitions; they are looking over all transaction records and ensuring the FCA that they’ve met the strict guidelines required of all firms. All transaction records are being captured, recorded and passed on to the FCA. All other firms that want to avoid future fines would follow by Traction FinTech’s example.
Quinn Perrot, the CEO of Traction FinTech, commented: “Investment Firms should regularly compare and reconcile the transaction reports held at their NCA against their internal back office systems. TRAction suggests checks be made daily with an end to end reconciliation carried out at least once a month,” Perrott elaborated.