Finding an advantage in regulatory reporting
As the need for financial services firms to provide greater transparency through regulatory reporting increases, it’s essential that firms move from complex operations and legacy architecture to a more rationalised approach.
A modern solution is needed to not only meet current and future requirements, but also aims to reduce any operational burdens and cost.
Typically, firms have limited capability or flexibility to reuse their own data and systems to gain any competitive advantage or improve performance management concerning sales (e.g. team targets, profitability, growth), client service and market information.
In our experience, the main challenge is data ownership, integrity and management, and not just about ‘bolting on’ a front-end reporting solution.
- Data originates from multiple source trading systems and is then channelled through multiple layers of legacy architecture offering constrained and limited flexibility to respond to new regulatory reporting requirements;
- Reporting demands on people, processes, systems and controls often leads to a narrow ‘ad hoc’ or ‘spreadsheet’ response rather than taking a holistic approach built to last;
- Often, firms have a limited ‘end to end’ view (e.g. multiple business views) of the entire reporting process, limiting their ability to identify and address inefficiencies, poor data quality or cost challenges;
- This is not helped by international regulators, who tend to enforce their own obligations, presenting conflicting ‘principles vs rules’ based control requirements across a single business process within a firm;
- Firms tend to throw more data management and remediation resource to ensure report accuracy and compensate for issues arising from legacy or disparate systems;
Firms need an approach that integrates existing source systems, offers flexibility and scalability and provides capability to meet current, future and unforeseen demands for any reporting requirements whether it’s transactional, prudential or statistical.
We have a solution that:
- Provides flexibility and scalability that works across all types of regulatory reporting per jurisdiction;
- Consolidates data and swiftly responds to transaction reporting needs (e.g. MiFIR, EMIR, SFTR);
- Supports an enterprise-wide operation to maintain reporting compliance and timeliness through a centrally controlled operation by incorporating other business needs (e.g. Investment Banking, Commercial, Asset Management etc);
- Provides an opportunity to reduce unnecessary remediation effort, regulatory response overhead and inefficiencies while enhancing governance, risk and compliance;
- Incorporates future Artificial Intelligence options and capabilities, thereby reducing costs and improving data integrity;
- Provides capability or flexibility to reuse their own data to potentially gain competitive advantage and drive market performance.
If you are facing similar challenges or perhaps you’re are losing patience with the traditional approaches from the market, we´d be delighted to help you understand your priorities in more detail and share our insights with you.
Axis works with financial institutions to help to deliver their regulatory, transformation and innovation agenda. We have helped clients to prepare for regulatory compliance, transform their business and operating models, and deliver new products and services to market. This often starts with a fundamental review of the regulatory reporting environment, operation and obligations to confirm what to do now, what to do later, and critically what not to do at all.
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