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Top regulator: City firms must bear responsibility for regtech risks

European regulatory chief says that if finance firms bring in fintech help with regulations, they will still be held ultimately accountable

Top regulator: City firms must bear responsibility for regtech risks

The European Securities and Markets Authority has warned banks and fund managers they can't outsource responsibility for complying with market rules, even if they outsource compliance processes to so-called "regtech" firms.

Patrick Armstrong, Esma's senior officer for financial innovation, said today that financial services firms' increasing take-up of regulatory technology brought many benefits. But he warned "it is not without risks" and financial institutions must take care to "delegate tasks, not responsibility".

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