Podcast ¦ Arum: Preparing for the FCA’s 2025 Product Sales Data regulation

Key Take Aways

1. The Financial Conduct Authority’s (FCA) Product Sales Data (PSD) regulation is a significant regulatory change set to impact firms in 2025.

2. Firms with over £20 million in outstanding balances or new advances will be required to submit detailed PSD reports beginning in October 2025.

3. Compliance with PSD requires firms to enhance their data accuracy, frequency, and completeness.

4. The PSD regulation is part of a global trend toward data-driven supervision, prioritizing real-time insights over annual reports.

5. Key risks of non-compliance include operational disruption, regulatory exposure, and outdated technology.

6. Modernizing data architecture, including transitioning to cloud platforms and real-time pipelines, is essential for compliance readiness.

7. Automation and AI can streamline reporting processes, making them faster and more accurate.

8. Robust data controls and clear traceability enhance regulatory compliance and auditability.

9. Firms should view PSD as a catalyst for developing stronger data capabilities rather than merely a compliance hurdle.

10. Proactive planning and investment in future capabilities are critical for successful PSD adaptation.

11. Collaborating with knowledgeable partners can facilitate a smoother transition to meet PSD requirements.

12. Continuous improvements in data management create lasting value while ensuring compliance with regulatory standards.

Key Statistics

• Firms with over £20 million in outstanding balances must submit PSD reports by October 2025.

Key Discussion Points

1. The fundamental impact of PSD regulation on firm operations and competitive positioning.

2. The necessity for near real-time visibility into product performance as mandated by the FCA.

3. The significance of operational readiness in meeting the new PSD data formats and submission requirements.

4. The risks associated with relying on manual processes and legacy systems to comply with PSD regulations.

5. Case study of a challenger bank successfully implementing a real-time data lake for compliance.

6. The role of automation and AI in enhancing data accuracy and reporting efficiency.

7. Importance of audit trails and robust controls in demonstrating compliance to regulators.

8. The necessity of understanding the regulatory landscape alongside technical challenges.

9. Advantages of conducting a cross-functional PSD readiness assessment for resource optimization.

10. How PSD can serve as a driver for enhanced data governance and smarter decision-making.

11. The importance of starting preparations early to ensure compliance readiness by the 2025 deadline.

12. The need to prioritise long-term capability investments over short-term tactical fixes.

Podcast Description

This podcast episode of RM AI Insights dives into the Financial Conduct Authority’s upcoming Product Sales Data (PSD) regulation set for 2025, featuring insights from Katie, a regulatory and technology expert at Aram. The discussion covers the regulatory landscape, compliance challenges, and the implications of PSD for financial firms. Listeners will learn about the significance of data architecture modernization, the role of AI in improving reporting accuracy, and proactive strategies for navigating regulatory expectations. By reframing compliance as an opportunity for operational improvement, this episode provides valuable insights for senior managers looking to enhance their firm’s readiness for PSD and beyond.