Articles - Common & financial reporting are biggest regulation headache


 Common Reporting and Financial Reporting rank first on the list of regulations that financial services find most challenging, according to new research from financial data management provider, AutoRek.
 
 The survey of senior business executives suggests that organisations are struggling with demands to provide more information on risk exposure and capital data to regulators. A quarter (25 per cent) of respondents admit that the increase in the complexity, granularity, frequency and volume of information required for Common Reporting and Financial Reporting is a challenge as the European Banking Authority (EBA) seeks to standardise reporting to national regulators. This is closely followed by 22 per cent of executives that list Solvency II, the EU legislation requiring businesses to hold enough capital liquidity to cover the level of risk within the business, as their biggest headache. A further 17 per cent of executives name Basel III, the regulation that requires banks to hold enough cash or liquid assets to meet liabilities for a year, as their biggest challenge.
 
 Jim Muir, director of AutoRek, comments on the research findings: “Regulators are focused on creating a more controlled market and demanding more risk and capital data to increase their visibility into the governance and accountability of organisations. As firms start to recognise that the longer term-trend is for providing more data, and faster, investment in new financial controls and strong data management practices is becoming a strategic imperative for the business.”
 
 Currently, those in the insurance and banking sectors are the biggest spenders on financial controls, with 14 per cent of insurers reporting that they currently spend more than £2 million per year on the financial controls agenda, and 6 per cent of banking professionals spending more than £5 million per year for this purpose. However, despite the challenges associated with meeting new regulations, the survey suggests investment in financial controls including people, processes and systems is deemed as a ‘help’ in achieving growth with 82 per cent admitting that it enables more rigorous profit and loss control.
  

Back to Index


Similar News to this Story

It aint what you do its the way that you do it
....that’s what gets results…. I may be showing my age with this Bananarama song but it’s really appropriate now we’ve started to see the first DC C
One more year so can we stop thinking about IFRS17 for now
On 14 November 2018, the IASB announced a deferment of the IFRS17 implementation date by a year, with some still calling for a two year delay.You coul
Allowing for climate related risks
Allowing for climate related risks when setting long term financial assumptions

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.