Last month, Immuta had the pleasure of working with the UK’s Financial Conduct Authority (FCA) and Bank of England (BoE) in a “Tech Sprint” designed to bring financial regulation into the machine age. The underlying goal of the Tech Sprint was to produce model driven, machine readable – and ultimately machine executable – regulations to enable faster, more efficient regulation and compliance within the financial services industry. (You can read the press release about our involvement here.)
Together with the Information Society Project at Yale Law School and a fantastic group of law students, we put together a research paper outlining the long-term risks and benefits of this approach, which we just released this week.
To put it mildly, the project was a big success – illustrating that financial regulations can be made machine executable, and that regulation can be created as code by regulators to enable instantaneous compliance and reporting. The Tech Sprint illustrated two incredibly important points: that this is achievable and that two of the most important regulators in the world – along with top-notch legal, tech and financial minds – are actively willing to work to make this happen.
At Immuta, we believe this project could fundamentally change how the financial services industry understands, interprets, and reports regulatory information – and the way that governments create and promulgate regulation writ large.
This goal is, of course, exactly what we’ve been working to achieve with our data management platform, enabling any data policy to be translated into code in plain English by anyone – technical or not. We believe that the only way to enforce policies on data at scale is to automate them – and we’re seeing this borne out in our customers every day.
In 1957, legal scholar Layman E. Allen published an article for Yale Law School entitled “Symbolic Logic: A Razor-Edged Tool for Drafting and Interpreting Legal Documents,” arguing that legal documents “can be clarified by identifying and spotlighting the logic” embodied within laws. In the 1950s, Allen’s work was clearly ahead of the available technology. Exactly 60 years later, however, the FCA and BoE’s efforts demonstrate that the time for these ideas has finally come.
Click here to read our paper, 2017 Model Driven and Machine Executable Regulations.