Transforming Data Collection – Minutes of the Reporting and Data Standards Transformation Council Meeting – November …
Meeting date: November 2, 2021
Location: This meeting was held via Microsoft Teams
The joint transformation program publishes the minutes of its committee. These documents are published for the sake of transparency. Any opinions, proposals or policies contained herein are those of the Joint Transformation Program or, as the case may be, its groups, committees or individual members. They do not represent the opinions, proposals or policies of the Bank of England, the FCA or other participants and should not be taken as an indication of future policy. Confidential or commercially sensitive information has been omitted.
AM opened the meeting and apologized for Gareth Ramsay who was unable to attend. IP explained the agenda.
Terms of reference
IP invited the Board to review the terms of reference for the TDC program, which apply to the Board. IP invited members with comments to send them to the Secretariat.
action: Members should send their comments on the terms of reference to the Secretariat by November 16, 2021.
Vision to transform data collection and consulting
IP asked the Board to consider what the ideal reporting process would look like ten years from now, the benefits it would bring and the role of the Board in this transformation.
Main talking points/comments:
Members stressed that reporting is just a process to produce a result – to provide data to users of companies and regulators who collect information. Members said any changes to the reporting process should improve this outcome.
Some members highlighted the need for a paradigm shift in the way reports are produced. They felt that this paradigm shift should allow for greater flexibility in collections. SC outlined the future reporting process for authorities to answer “the unexpected question.” Some members described what this future state might look like. They described a world of data residing in organized datasets rather than reports, with authorities allowed to access this data under specified conditions.
Other members emphasized the need to streamline the data collected. PB thinks regulators need to overcome the mindset that it’s always good to have more data. He believes that reporting should be more consistent but more streamlined.
Members discussed who could benefit from a data collection transformation. SOM stressed the importance of considering all relevant stakeholders, especially market players, who could benefit from increased data transparency.
Members agreed that a key function of the board will be to hold the joint transformation program accountable – ensuring it has a clear purpose, meets its targets, etc.
Members agreed that the program needs a clear approach to transforming data collection, based on a set of defined principles. They felt that the board had a role to play in defining and disseminating these principles. SS mentioned the FAIR Guiding Principles for Scientific Data Management and Stewardship as a useful comparison.
Members noted that the Bank/CFA should further clarify the mandate of the Board. They also thought the Board should articulate a vision for the project.
AM summarizes the actions of the program.
action: The Secretariat should develop a framework to measure the progress/benefits of the programme.
action: The Secretariat to produce a first draft of design principles for the products of the program, for consideration by the Board.
Pre-mortem to transform data collection and consulting
IP asked the Board to imagine that in ten years the program had failed to achieve transformation, and to suggest what might have been the cause.
Main talking points/comments:
Members reiterated their view that work on transforming data collection should have a set of well-defined goals. They felt that these goals should be measurable and that tracking the progress of the program against its goals should be evidence-based. They felt that a key role of the board is to define and monitor these measures. CR2 suggested that the program could express its goals as a granular set of objectives, rather than as a grand ambition. RK suggested that the Board repeatedly redefine these objectives in response to developments.
Members discussed how to ensure the scope of work is both clear and manageable. CR2 suggested that a goal of “transforming data collection” is too broad. He suggested that program participants will need to decide on the extent of their ambition for the different elements of the program. For example, he thinks the Board will need a good idea of which goals will require ‘transformation’ and which will simply require ‘improvement’.
Members agreed that the program should focus on removing elements of data collection that create inefficiency, rather than creating new collections intended to be more efficient.
Some members highlighted the need to get companies to “buy in” and show business benefits beyond regulatory reporting. For example, RA spoke about the need to produce and show business benefits beyond regulatory compliance. He said the transformation program has group-wide technology and data advantages. He felt that an excessive focus on regulation would risk isolating the program from relevant stakeholders.
AA warned of regulatory costs and the risk of the industry passing them on to customers. He also proposed that the project monitor ongoing developments in relevant technologies.
Joint Transformation Program Update
RD1 presented the program’s conceptual vision of how the transformation should work – ‘pipeline management’ first, then ‘discovery and design’, ‘decision and challenge’, etc. She explained the different elements of the program structure, including the roles of the different governance bodies and delivery groups.
AM provided an update on the project plan, including the status of discovery and design work. He explained that a key part of the plan is work to scale up solutions, for example when addressing CRE issues, examining whether emerging solutions can also apply to mortgages.
LA asked for clarification on the relationship between the Council and the rest of the program. IP suggested that the program could make this clearer and that terms of reference might be the best way to do this.
action: The Secretariat to consider the need to clarify the terms of reference and confirm the next steps.
President Appointment Process
AM explained that in the longer term, the board will have an industry chair. He explains the selection process for the president. If participants wish to be chairpersons, they must nominate themselves. The Board will then vote on the nominees.
action: Participants wishing to nominate themselves should send a brief statement to the Secretariat explaining their suitability by November 16, 2021.
Actions agreed at this meeting
Members should send their comments on the terms of reference to the Secretariat by November 16, 2021.
Secretariat to develop a framework to measure program progress/benefits.
Secretariat to produce a first draft of design principles for program products, for consideration by the Board.
The Secretariat to consider the need to further clarify the terms of reference and confirm next steps.
Participants wishing to nominate themselves should send a brief statement to the Secretariat explaining their suitability by November 16, 2021
Ankur Agrawal (AA), AXA
Luke Ashton (LA), Barclays
Roshan Awatar (AR), Lloyds Banking Group
Paul Barrett (BP), AIG
Andy Beale (AB), Financial Conduct Authority (Interim TDC Program Manager)
Paul Chambers (PC), Standard Chartered
Samik Chandarana (SC), JP Morgan
Charlotte Clark (CC), Association of British Insurers
Graham Cohen (GC), BNY Mellon
Rebecca Ding (RD1), Financial Conduct Authority (Transformation Program Manager)
Richard Dunne (RD2), RSA Group
Lee Fulmer (LF), UBS
Alastair Hall (AH), legal and general
Rakshit Kapoor (RK), Santander
Shane Kingston (SK), Brit Insurance
Angus Moir (AM), Bank of England (Transformation Program Manager)
Scott O’Malia (SOM), International Swaps and Derivatives Association
Adrian Pearce (AP), Credit Suisse
Ian Phoenix (IP), Financial Conduct Authority (Director of Intelligence and Digital)
Corinne Powley (CP), Phoenix Group
Elaine Priest (EP), Nat West
Charles Reindorf (CR1), Bank of America
Charles Resnick (CR2), ClearBank
Aaron Shiret (AS), Bank of England (TDC Secretariat)
Simone Steel (SS), National Construction Company
John Tierney (JT), Nomura
Matthew Tyrrell (MT), Financial Conduct Authority (Senior Director, Central Data Services)
Gareth Ramsay, Bank of England (Executive Director Data and Analytics)
David Palmer-Lewis, Principality Building Society
Andy Parsons, Just Group