Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory (including Dodd-Frank Swap) and MIS reporting solutions for the financial services industry, is pleased to announce that it has signed four contracts in March for its REPORTER regulatory compliance solution.
Lombard Risk REPORTER is a fully scalable solution designed for regulatory compliance at branch and/or head office level, with global coverage, with detailed supervisory computations including all Basel III capital and liquidity calculations. Streamlined integration to multiple source systems is enabled by its rich ETL functionality, and stress testing and scenario analysis, now part of the regulatory scene, by Lombard Risk’s LISA solution. Lombard Risk is the market leader in the United Kingdom (with nearly 40% of the market), holds a significant market share in many countries in Asia and Europe – plus (outside of simple spreadsheet solutions offered) services more financial institutions in America than any other regulatory reporting vendor.
The four contracts, all with UK-based financial institutions, are for the Lombard Risk REPORTER regulatory compliance solution that meets the European Banking Authority’s (“EBA”) Common Reporting requirements which will affect the UK for the first time in 2013 and includes:
- New regulatory calculations: for capital and large exposures
- New reports: 34 new COREP templates
- New delivery methodology: XBRL
The European Banking Authority’s Common Reporting requirements are not expected to be finalised until June 2012 but, as this leaves little time before the January/March 2013 reporting deadlines, firms are implementing systems NOW in order to be ready.
Lombard Risk business matter experts, the largest permanent UK-based team of any vendor in this space, have been analysing the EBA’s regulations since the release of the CP50/51 (December 2011) and are currently working with existing clients to identify the additional information that is needed to meet the first regulatory submission requirements.
James Philips, Director Regulatory Compliance, explains: “The precise calculations and report details are not yet finalised by the regulators but, from our experience and close working relationship with the EBA, we are sufficiently confident of a large proportion of the information that’s required, and will issue calculation engines and reporting templates that meet the final detailed requirements as and when they are published.”
John Wisbey, CEO, added: “This major regulatory change is similar to the situation our clients found themselves in with the FSA’s liquidity regime of 2010. We started work with firms well in advance of the finalisation of the regulation and were able successfully to implement more than 35 systems in good time for clients to meet the FSA’s requirements and remain compliant.”
The work carried out to prepare for the EBA Common Reporting will also help firms meet the January 2013Basel III deadlines to implement best practices in relation to monitoring, stress tests and MIS. The EBA are also responsible for Financial Reporting (FINREP – with up to 69 new templates depending up the accounting standards applied) and the Lombard Risk REPORTER solution will meet those demands as well; providing clients with a single, strategic, ‘open’ solution to meet ALL regulatory demands AND create a unique, central repository of regulatory-ready data from which to create management information, business intelligence and ad-hoc reports as required.