Lombard Risk Management plc (LSE: LRM), provider of REPORTER, the leading automated regulatory computation and reporting solution providing automation for COREP, FINREP and other European Banking Authority reporting requirements, conducted an on-line poll during its latest regulatory update webinar held on 19th April 2013.
The polling questions, responded to by hundreds of finance and risk professionals, focused on the imminent introduction of CRR/CRD IV across the European Union. Asked how they viewed the impact of the new regulations on financial markets within the EU, respondents were broadly positive, with more than half indicating that they see it as either a "Positive" or "Very positive" development.
When asked how well prepared their organisations were to meet the requirements of CRR/CRD IV when introduced in January 2014, 32% of respondents indicated that they had "the basics in place", while 67% felt they were not at all well prepared. Most interestingly, 24% doubted that their firms would have everything they needed in place in time.
Robin Bridge, Director Regulatory Compliance, Lombard Risk commented: "This update to the Capital Requirements Directive and the new Capital Requirements Regulation are arguably the most significant developments in the European regulatory arena for many years, and represent a significant challenge for many financial institutions. It is not surprising that so many respondents felt their firms were not yet well prepared for its introduction. There have been significant delays at European level over the past year as the politicians have concentrated more of their time on the problems of the Eurozone and the proposals for European Banking Union and the Single Supervisory Mechanism."
Bridge continued: "While the new reporting requirements are now reasonably firm, following approval of the CRR and CRD texts at the recent, much delayed, EU Plenary session, they have still not been finalised. The final Implementing Technical Standards may not be available until early August, given the timelines previously indicated by the European Banking Authority, which is responsible for defining the detailed reporting requirements and collecting the regulatory data across Europe. Clearly a number of firms could have been waiting for the requirements to become clearer before fully committing to the preparations they will need to undertake: however our advice is that firms cannot afford to wait any longer - the implementation date may still be eight months away, but firms should not underestimate the work involved in sourcing and assuring the quality of the more granular data that COREP and FINREP reporting will require. Progress now is an imperative, particularly for those that haven't yet even got the basics in place."
Lombard Risk has analysed and interpreted the draft requirements ever since CP50 was published in December 2011. Its consultants have extensive knowledge of the requirements; which can be leveraged in relation to:
- Data gap analysis and data sourcing
- Determination of data mapping and transformation requirements
- Data quality assurance and cleansing
- Mapping and development of expected results
Lombard Risk has already provided fully functional releases of its REPORTER product reflecting the draft reporting requirements. With substantial computation and reporting functionality already developed and delivered, the company is well on track to support its clients through delivery of the finalised requirements during the second half of 2013.