UK Finance's latest must read blogs

1.??? UK Finance response to AI whitepaper: A pro innovation approach to AI regulation

The Department of Science, Innovation and Technology published a policy whitepaper titled ‘A pro-innovation approach to AI regulation’ on 29 March 2023 with three primary objectives in relation to AI (artificial intelligence).

• To drive growth and prosperity by making responsible innovation easier and reducing regulatory uncertainty
• To increase public trust in AI by addressing risks and protecting our fundamental human values
• To strengthen the UK’s position as a global leader by using AI technology in addressing global challenges (while ensuring that there are new regulatory approaches to guide responsible innovation)

Placing these three principal objectives at the centre, the policy paper aimed to position the UK as a global leader in AI regulation by enabling innovation through a proportionate, adaptable, and context sensitive approach.

Recognising the importance of these broader objectives for diffusing AI responsibly within the financial services industry, UK Finance submitted a response to the whitepaper.

Read the full?blog?by Sushant Subedi, Analyst, Digital Tech and Cyber, UK Finance and Walter McCahon, Principle, Privacy and Data Ethics, UK Finance

2.??? Recalculating and re-examining G-SII buffers

UK Finance has responded to the Prudential Regulation Authority (PRA)’s CP 16/23 on its proposals to update the UK Technical Standards (UKTS) on the identification of global systemically important institutions (G-SIIs).

This updating?consultation?is required to align the UK’s approach with the recently amended Basel Committee for Banking Supervision (BCBS)?methodology?for identifying G-SIIs.

In our consultation response?we supported the PRA’s proposed changes to the UKTS which will align it with the updated BCBS framework by

• Adding trading volume as a new ‘substitutability/financial infrastructure‘ category and the consequent updating of indicator weights
• Adding insurance subsidiaries to data consolidation
• Deleting the now irrelevant transitional provisions

However, we said that a more fundamental review of its now 12-year-old G-SII assessment framework by the BCBS is warranted and encouraged the PRA to promote this.

Read the full?blog?by Andrew Wojega, Intern, Prudential, Reporting and Tax, UK Finance.