Financial Conduct Authority
Details
In 2021 the DRCF established an Algorithmic Processing workstream to explore the impact of algorithms across our industries and regulatory remits.
As part of this workstream, we launched two separate research projects - one looking at the harms and benefits posed by algorithmic processing (including the use of artificial intelligence), and another looking at the merits of algorithmic auditing, as a way of documenting risks and assuring stakeholders that an algorithmic system behaves and is governed as intended.
In undertaking these projects, the DRCF members sought input from a range of stakeholders, including representatives from academia, civil society, government, industry, the public sector, and consumer groups.
In the next financial year (see DRCF workplan 2022 to 2023), we intend to undertake further activity in the field of algorithmic processing, looking more closely at how regulators might support algorithmic transparency, as well as what role regulators might play in the algorithmic auditing ecosystem.
See press release:UKs digital watchdogs take a closer look at algorithms as plans set out for year ahead
Call for input
We are now launching a call for input alongside the publication of these two papers and we welcome and encourage all interested parties to engage with us in helping shape our agenda.
Questions of interest for Paper 1 The Benefits and Harms of Algorithms
- What are your overall reflections on the findings of this paper?
- What other areas could the DRCF focus on?
- Which area of focus does the DRCF have the most potential to influence and which would you prefer the DRCF prioritised?
- What outputs would consumers and individuals find useful from the DRCF to assist them in navigating the algorithmic processing ecosystem in a way that serves their interests?
- Do you have any evidence on the harms and benefits of algorithmic systems you would like to share with the DRCF?
Questions of interest for Paper 2 Auditing Algorithms
With reference to the hypotheses included at the end of this paper:
- What are the advantages and disadvantages of each of these hypotheses?
- Which of these hypotheses would you prefer the DRCF tested and explored further?
- Are there any other actions the DRCF should consider undertaking in the algorithmic auditing space?
Stakeholders are invited to respond by email drcf.algorithms@cma.gov.uk by Wednesday 8 June 2022.
About the DRCF and its Algorithmic Processing workstream
The Digital Regulation Cooperation Forum (DRCF) was formed by the Competition and Markets Authority (CMA), the Information Commissioners Office (ICO) and the Office for Communications (Ofcom) in July 2020. The Financial Conduct Authority (FCA) became the fourth member in April 2021.
The DRCF was established to build on the strong working relationships between these organisations and to establish a greater level of cooperation, given the distinctive challenges posed by digital regulation. We have a particularly broad regulatory perspective and as of April 2022 are a unique forum globally.
Online services are playing an ever more significant role in our lives, and the digital landscape is developing at pace. There is a need for a coherent, coordinated, and clear regulatory approach for the good of digital services, internet users and the companies who serve them.
Algorithmic Processing is one of several priority areas for strategic joint work between DRCF members. The aim of this workstream is to work multi-laterally across the four members of the DRCF to use our unique vantage point to share understanding and knowledge on algorithmic processing and standards setting.