Category: Regulatory Reporting

ALMM Update

Posted on by Julie Duncan

The PRA has finalised the date of changes to liquidity reporting rules. On 22 April 2016, FSA 050-053 will be switched off and the EU requirements to report additional liquidity monitoring metrics introduced. Firms will not be required to report both sets of returns simultaneously. Note the first reporting date for returns C67.00, C68.00, C69.00, C70.00 and C71.00 will be 30 April for monthly reporters, and 30 June for quarterly reporters.

C66.00 (Maturity analysis) has been dropped

For the months from April 2016 to October 2016 only, the reporting remittance date for monthly reporters is the 30th calendar day after the reporting reference date. Afterwards it reverts to 15 calendar days. Quarterly reporters have 30 calendar days to remit returns.

Reporting remains monthly – but quarterly for institutions that are not part of a group with subsidiaries or parent institutions located outside the UK and the “balance sheet total of the institution represents only a small proportion of the sum of individual balance sheet totals of all institutions in the respective Member State and the institution has total assets which are not significant”. This means almost all UK banks and building societies are quarterly.

http://www.bankofengland.co.uk/pra/Pages/publications/ps/2016/ps1516.aspx

COREP Taxonomy Updates

Posted on by Julie Duncan

There have been some recent press releases issued by the EBA regarding updates to the Data Point Model and the XBRL Taxonomies according to the Implementing Technical Standards (ITS) on Supervisory Reporting.

The first of these is a corrective update, taxonomy 2.4.1, which is to be used in place of the previously published taxonomy 2.4. This taxonomy will apply for submissions with reference dates 6 months from the point of their publication in the Official Journal- provided that this is prior to December 2016. At the time of writing, there has been no publication relating to taxonomy 2.4 or 2.4.1 in the Official Journal.

The second press release is related to the publication of taxonomy 2.5. It is explicitly stated that this will be used for reference dates from 31 December 2016 onwards.

In the interim, the active taxonomy continues to be 2.3.1.

We will continue looking out for further news on the situation, and liaise with contacts in the industry in order to keep our clients updated with the most recent regulatory developments.

Integrated Solution – Consistent Internal and Regulatory Reporting

Posted on by Julie Duncan

ALMIS® gives financial institutions the ability to manage, monitor and report their financial risk profiles, providing their Executives and Boards with accurate information on current and forward looking positions to help them proactively monitor and plan. The same system provides a single version of the facts and for regulatory reporting.

BSA – Associate News : ALMIS® International article on Regulatory Reporting – Dealing with Change

Posted on by Julie Duncan

Regulatory Reporting – Dealing with Change

BASEL III, CRD IV, COREP, FINREP, BoE reports – the list is seemingly endless and, regardless of size or resource, all UK Building Societies have to comply with the specific demands of submission dates, report formats, data validations and auditability.

ALMIS® has helped more than 40 firms deal effectively with the burden and complexity of regulatory reporting.

ALMIS’ Feedback to Regulators

Our recent presentation to PRA supervisors, requested on behalf of firms, a single point of accurate validation rules to reduce instances of re-submissions. We also highlighted the interpretation differences and the need for more clarification.

Benefits of an Integrated System

Automation of reports and use of the same data sources for management information is a key objective for both regulators and firms. Societies that demonstrate synergy and joined up thinking in their approach are in the best position to take maximum advantage of the favourable interest margins and prove their competence to regulators.

With the rapid approach of the first FINREP submissions (with some clients asked to submit ahead of time), together with the new taxonomy 2.1 (including asset encumbrance reporting), finance departments must effectively combine their finance teams with technology such as ALMIS.

ALMIS® Automates Large Exposure (LE) Reporting – helping firms overcome the increased demands of LE Reporting for COREP

Posted on by Julie Duncan

Fact: LE reporting for the new COREP regime is detailed, demanding and complex

Fact: LE reporting now consists of 6 different reports

Fact: Firms should report two different measures of LE

  • Each LE being more than 10% of eligible capital

  • The 10 largest exposures by type, value and maturity

Fact: LE reporting needs to separately show connected groups of counterparties, NACE codes and legal entity identifiers (LEI’s)

This all adds up to a significant reporting burden for any finance department!

Fact: Using ALMIS® Capital Adequacy and COREP Reporting can significantly reduce this burden

Firms have previously benefited from using the ALMIS® system (Capital Adequacy Module) to monitor, control and report LE. Our enhanced Capital Adequacy and Reporting capabilities give them the power, flexibility and control to automate this process – now even more important to address the more detailed and complex reporting.

Firms need to use the same data to calculate LE as for CR (Credit Risk). The ALMIS® system seamlessly integrates and automates CA, CR and LE COREP returns using the Capital Adequacy module. This helps firms by:

  • Saving time and resources

  • Reducing input errors

  • Creating a single consistent version of the data

  • Providing a more comprehensive audit trail

  • Giving confidence to the regulators by using a controlled and integrated solution

For more information on how ALMIS® can help reduce your LE reporting burden, contact [email protected]

COREP Delayed

Posted on by Julie Duncan

ALMIS® International are ready for COREP reporting but banking firms can breathe a sigh of relief as the new Regulation deadlines are delayed.

The EBA has today announced that the submission dates for the first set of COREP reports will be postponed from April/May 2014 to end June 2014, there is no change to the reference dates.

The postponement affects the following reports:

  • The first quarterly reports (own funds, large exposures, leverage ratio, and net stable funding ratio) with reference dates as of 31 March 2014 are now due end June 2014, as opposed to end May 2014.

  • The first monthly liquidity reports with reference dates of 31 March 2014 and 30 April 2014 are now due end of June 2014 as opposed to April 2014.

  • The first reporting reference date for asset encumbrance will be 31 December 2014 and the first remittance date will be 11 February 2015.

For more information on this update, see the EBA website

Georgina Macleod, Client Support Manager, commented ‘ALMIS® is ready for the first submission but there were so many technical difficulties and challenges facing firms that the delay will be welcomed by our clients. This gives us all a good opportunity to now implement the regulations properly’

Are you prepared for the implications of the new CRD IV regulations?

Posted on by Julie Duncan

ALMIS® International can provide you with a comprehensive solution to meet the demands of regulatory reporting for COREP and FINREP.

 

ALMIS® International provides a full CRD IV submission system, with the option to calculate reports directly from a firm’s balance sheet. Our system can provide a complete solution to all the requirements of CRD IV and has the flexibility to deliver on specific elements that your organisation requires.

 

The ALMIS® Regulatory Reporting Module provides a fast and flexible method of completing COREP and FINREP reporting, offering both full automatic calculation and spreadsheet integration.

 

Users of the regulatory reporting module have two options:

 

1. Input only option – transforms data held from spreadsheets into XBRL.

2. A full calculation option – produces the reports directly from your source systems.

 

The ALMIS® system has been comprehensively developed and extensively tested, making it a reliable, effective and time saving solution to reporting. ALMIS® is supported by a team of ALM experts and software engineers and is updated to ensure it meets all regulatory changes.

 

The benefits of using the ALMIS® system for regulatory reporting include:

 

  • Reduced pressure on finance department through seamless automation of regulatory returns which are consistent across regulation and ALCO reporting

  • PRA Reporting through XML to the PRA/FCA’s Gabriel System

  • COREP Reporting through XBRL to the PRA/FCA’s Gabriel System

  • Bank of England Reporting using XML to the Bank of England’s OSCA system

  • Easy to use with Audit trails

  • Full validation as is done on the Regulatory Systems, including cross validation between the reports

  • Automatic calculation on totals and listing of calculations on cells

  • Segregation of Editing, Reviewing and Submission roles

 

Our team of ALM experts, software engineers and system integrators understand the changing regulatory landscape and provide a flexible, forward-looking system that enables you to achieve regulatory compliance with minimum disruption to your business.

 

With over 50 banking clients and over 60% of the UK Building Society market, ALMIS® International are a UK market leader for regulatory reporting systems for UK banking firms.

 

For more information on how the ALMIS® solution can work for you, contact Cecilia Mueller on 0131 4528898 or email [email protected]

COREP Deadline Confirmed

Posted on by Julie Duncan

Formally confirmed on the 27th June 2013; CRD IV legislation has been formally published in the Official Journal of the EU. This affirms that the new legislation will come into effect from 1st January 2014.

As you may be aware, the CRD IV package adoption date has been subject to numerous delays. The original implementation date of 1st January 2013 was repeatedly pushed back due to the lengthy approval process involved in the finalisation of legislative text. The final content and template layouts are awaiting confirmation, additionally it has still not been confirmed if this submission will include the LCR, NSFR and Leverage Ratio.

Now that the date for COREP has been finalised, many financial institutions are now looking for a solution which will enable them to create, validate and submit the reports. The EBA require all firms to be in a position to submit returns in the standardised XBRL format for the first set of submissions starting on 1st January 2014.

ALMIS® International have developed a solution to help with the burden placed on financial institutions. The Regulatory Reporting functionality within the ALMIS® system is developed in line with these changes to ensure clients are best placed to meet the extensive regulatory demands placed upon them.

Many firms have placed their trust in ALMIS® to ensure their compliance for the new regulations. ALMIS® caters for a wide range of institutions’ requirements, from providing a basic submissions vehicle with manual inputs, to spreadsheet integration, all the way to full automatic population.

The ALMIS® Regulatory Reporting Module has been extensively developed to include an effective and time saving solution to FSA, CRD IV and BoE reporting. ALMIS® offers effective workflow management, validation routines and full audit trails to allow for efficient management and full compliance.

Further delays to CRD IV (COREP)

Posted on by Julie Duncan

Rumours have been circulating in recent months about further delays to COREP; the FSA have today issued a revised statement on the expected CRD IV and CRR implementation, claiming it is continuing work on implementing the directive and expects firms to do the same.

In response to further deferrals in the negotiation timetable, the FSA have put back implementation of COREP a further six months claiming it will start collecting data for the period beginning 1 January 2014, should the legislation and related standards be in force by that date.

The FSA set out their intended approach to capital transition in a statement in October 2012. Once finalised legislative text is available at the EU level the FSA intends to publicly consult on changes to FSA rules.

ALMIS® International will work with clients to meet the new rules and are holding a seminar with the FSA (soon to be PRA) in London on 10th April 2013 to discuss the practical implications – already over 20 banking firms have signed up to attend this event. This will discuss developments in bank liquidity and capital regulations & practices; it will provide an overview of the latest developments in bank regulations and practices with a particular emphasis on CRD IV and the impact of BASEL III.

For more information on the ALMIS® International Seminar “Developments in Bank Liquidity and Capital Regulations” click here.

Source: FSA

Regulatory Reporting Module Developments

Posted on by Julie Duncan

 

As part of the on-going development of the Regulatory Reporting module ALMIS® International is currently working with the Bank of England to develop a submission tool for the new OSCA application.This new submission platform will replace the current BEERs platform and will incorporate XML technology to aid the BoE in its analysis. This new platform is scheduled to go live in March 2013 and there will be a transitional period where both methods of submission will be accepted.

Other developments for this module include the capabilities for producing the full suite of FSA reports.The ALMIS® Regulatory Reporting module will include all FSA, COREP, FINREP and BoE (OSCA) reports. The capability will be provided to clients using the future proof extensible data point model within ALMIS.

These new developments show our commitment to providing world class asset liability management solutions which address the regulatory and reporting demands in today’s environment.

ALMIS® is highly regarded in the small and medium sized banking sector as a fully comprehensive Asset Liability Management system with the capabilties for Funds Transfer Pricing, Forecasting, Hedge Accounting and the capabilties to produce all Regulatory Reports from a single integrated multi-user platform.

For more information, contact ALMIS® International.