11th April 2017

Addressing the Complexities of the Regulatory Environment

Written by Alex Grimm & Mark Shead, Co-Head, RegTech Solutions UK

Regulation is vital for the stability of the global financial markets. Since the financial crisis of 2008 there has been a huge increase in regulatory requirements, and consequently, the amount of reporting firms must undertake. With the cost and complexity and volume regulatory reporting rapidly increasing, is it time for a complete re-think on the way firms report?

For each regulatory change, firms go through the same process of seeking external interpretation, carrying out internal analysis, and then sourcing and processing data through their individual data models and systems – a highly intensive process requiring large investments of time and resource.

It is clear a new information value chain is needed for reporting which increases the efficiency of supervisory processes, minimises risk, allocates resource effectively, and improves the basis for decision-making by higher transparency and faster availability of data.

For the UK, it may be that we look to Austria for guidance. The majority of Austria’s Banks inhabit a single industry utility – AuRep – which provides huge efficiency gains and allows the cost of regulatory reporting to be shared across the entire industry. This utility, using BearingPoint’s Abacus platform as its basis, is in fact the world’s largest regulatory reporting factory – including over 1000 firms, and processing over 1.4 billion records each reporting date, and has already seen a saving of over 30% across the country.

This platform has the potential to transform the UK industry, and with the introduction of semantic technology it can link systems and data, changing the way regulation is implemented – allowing banks to rapidly respond to change.

Adopting a utility such as this in the UK could offer huge potential savings across the industry, but it requires banks and regulators to change the way in which they think and work together.

To find out more about UKRep is available here.

Please register or login to add this to your interests.