Best-in-class technology offers the complete functionality to automate data management and reconciliation processes, provide enhanced financial and operational control frameworks, and the capability to meet different regulatory reporting requirements – all underpinned by transparency, good governance and a robust audit trail.
This week, I am speaking at a Panel Session at FTF’S annual ReCon London event about the impact new regulations are having on the reconciliations process and what firms need to know to ensure compliance.
The direction of travel for regulators is only going one way, primarily to restore confidence in markets, and to improve transparency and fairness. There is now not only a real need, but also a real desire by firms to automate and integrate regulatory reporting, as well as increase operational efficiency and risk mitigation.
Firms’ capability and capacity to deliver are continually being tested from an economic as well as a regulatory perspective. Several regulatory requirements have contributed to that challenge, including:
- PS14/9 CASS (Review of the Client Assets Regime for Investment Business)
- MiFID II/MiFIR (Markets in Financial Instruments Directive II/Markets in Financial Instruments Reporting)
- CoRep (Common Reporting) and FinRep (Financial Reporting)
- FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard)
- BCBS239 (Basel Committee on Banking Supervision – Principles for Effective Risk Data Aggregation and Risk Reporting)
Fundamentally, firms need to know their data, understand their data, and be able to report completely and accurately on their data, both internally and externally.
Robust, comprehensive and consistent data is needed to be able to make the right business decisions. Integrity of data can be particularly difficult in a multi-system, multi-data environment, but is vital to the ongoing success of an organisation. Without streamlining the collection, validation, reconciliation and reporting processes, businesses are likely to spend less time understanding the business impacts of such areas as terms of business, risks and client behaviours. However, without scalable processes, businesses are susceptible to significant failings and regulatory and reputational risk.
By Gillian Boston, Associate Director, AutoRek