REGISTER

email 14 48

July 23, 2014 - Event summary and results of live online poll from recent webinar: European Banking Authority (EBA) regulatory reporting "What's on the horizon?"

These polls were carried out live during the 20th in the series of our online regulatory update webinars entitled EBA Regulatory Reporting – "What's on the horizon?" The online briefing took place on 22nd July 2014 and was attended by business representatives from over 100 financial services institutions, mainly UK-based.

After summarising the EBA Common Reporting (COREP) to date, James Phillips, Regulatory Strategy Director at Lombard Risk, went on to review the upcoming EBA reporting calendar and the reporting obligations firms face as follows:

  • Clean-up time: validations; latest version XBRL taxonomy; finalised templates
  • EBA Financial Reporting (FINREP)
  • Asset Encumbrance (AE)
  • Additional Liquidity Monitoring Matrix (ALMM)
  • More to think about: Adding the R(atio) to the Liquidity Capital Ratio (LCR); disclosures and funding plans reporting; the impact of the Single Supervisory Mechanism (SSM)
  • A new Business As Usual (BAU) reporting regime

Question 1: With the EBA end-game in mind, now we’ve done COREP (including LE and LR), and LC and SF for the first time, we reckon we…..

This first question was designed to get a view of how the financial services industry sees the forthcoming regulatory reporting environment –>90% still see the regulatory burden as onerous, with only 8% of firms thinking it will now be plainer sailing after the initial COREP submissions.

Around 52% of firms stated now they’ve completed COREP (including LE and LR), and LC and SF for the first time there is still quite a lot yet to come while 40% think they are at the beginning of a LONG journey.

Question 2: We are keeping geared up, looking to the future, as EBA changes continue (FINREP, AE and for 2015 LCR, ALMM…)…

We asked this question at webinars that took place both before and after the first COREP submissions (i.e. in April and July) to gauge how firms were geared up to handle FINREP, Asset Encumbrance, LCR and ALMM.

Results show that few are taking a “Regulatory Holiday” but, now that the first COREP submissions have been made, a higher % of firms are now going straight into preparing for FINREP and Asset Encumbrance reporting than before.

Question 3: There is food for thought here. In the end 2015 BAU environment, could we really cope with the current staffing and automation mix?

Towards the end of the regulatory update James Philips explained FINREPAsset EncumbranceAdditional Liquidity Monitoring Metrics (ALMM) and Funding Plans and wondered how firms will cope with resultantBusiness As Usual (BAU) regulatory reporting regime covering ALL these areas.

With this in mind Lombard Risk posed the question “Could firms cope with this level of BAU reporting with the current staffing and automation mix?”

The majority of firms stated that, at this stage, they really didn’t know (if they could cope) and are planning to review this.   26% of firms however had considered the situation and were currently in the process of adding further staff to cope with BAU end-game.

ONLY 7% stated that they could cope with current resources – taking into account LC, ALMM and intra-day liquidity (for some) and quarterly ‘everything else’, together with annual disclosure and funding plans.   Are they optimists, or have the already snapped up the ever-decreasing supply of regulatory experts for their team?

REG-Xpert, James Phillips, Regulatory Strategy Director at Lombard Risk says: “We ran yesterday’s webinar on the basis of the Long and Winding Road – an allegory for the journey to EBA reporting.  It seems that this may have had a high level of resonance with everyone, with a strong agreement (to the polls which we posed) with the current work being at the beginning of a journey, with really quite a lot to do.

“With a whopping 92% of respondents in this overall mindset (beginning of a journey, a lot to do) gives a clear “tick” to the feeling that actually the shift to European reporting is frankly at the start of the impact. There is the cultural change, the shifts in where jurisdiction applies, and that EU law is now calling the shots as far as firm supervision is concerned.

“The other most striking thing which I see in the on-line polls was the result that around a quarter of the respondents had already, or were about to, add staffing to deal with the business as usual reporting load; additionally that well over half had not yet got a view on this.  Tellingly, only 7% considered that the reporting workload under business as usual conditions in 2015+ could be handled by their current team.  The question posed of course also looked to take account of the level of automation which firms had in place or where planning for, showing that even if firms do “tool-up” there is a “people-up” too which will have to be done. ”

MetricStream TPRM

CyberBanner

CyberBanner

CyberBanner

CyberBanner

CyberBanner

Log in

Please Login to download this file

Username *
Password *
Remember Me

CyberBanner

CyberBanner

CyberBanner

CyberBanner

CyberBanner

CyberBanner

CyberBanner

CyberBanner

CyberBanner

MetricStream TPRM

CyberBanner

CyberBanner

Go to top