About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Information Builders and Unisys Help Financial Industry Meet New Compensation Time Rules

Subscribe to our newsletter

Information Builders today announced that it has launched a joint solution with the UK subsidiary of Unisys Corporation for the British financial services industry. The arrangement will enable financial institutions to collate data from multiple sources to provide a single view of each customer. This is in response to the latest Financial Services Authority (FSA) rules, which require tighter deadlines for compensation payments – where the UK government compensates savers if there is a problem with the retail banking organisation in which they hold deposits – from 30 to 7 days.

The software collates data from different accounts that a consumer holds at a bank or building society, and then cleanses and stores that data in a regulated format. This allows the banks to spot and investigate any irregularities. A report is then produced, which covers all account information for any one customer. The joint solution from Information Builders and Unisys is currently being implemented in a major retail bank in the UK.

The financial services industry is coming under the scrutiny of an increasing number of rules and regulations. The seven-day compensation rule began on December 31, 2010. This is just one of many compliance issues the financial services industry will have to adhere to. This new collaboration will help financial institutions meet these increasing demands.

“Currently, many retail banks and financial services organisations are underprepared for adhering to these new FSA regulations. With multiple customers holding a range of accounts across different banks and building societies, calculating assets of individuals in such a short space of time is extremely difficult and could leave major banks in breach of the regulations,” said Peter Walker, country manager UK & Ireland, Information Builders.

The solution allows organisations to pull together accurate data on individuals to provide insights into consumers’ combined assets upon request from the FSA.

The new guidelines mean consumers can claim an increased amount of compensation if their bank or building society is unable to pay them – for example if it goes bankrupt. It also makes the claims process simpler as the Financial Services Compensation Scheme (FSCS) can access more financial information about an individual more quickly. Therefore payments will reach consumers faster – within the new seven-day target.

The FSA has confirmed that compensation limits for investment, home finance advice, and arranging claims will increase from £50,000 to £85,000, per person, and per authorised firm, from December 31, 2010. This brings the compensation limit for these classes in line with the limits for deposit claims. Going forward, the FSA will investigate on a regular basis to ensure customer data is being stored correctly and accurately. The solution will provide an effective way to keep track of customer data in order to meet the FSA’s regulations.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: In data we trust – How to ensure high quality data to power AI

Artificial intelligence is increasingly powering financial institutions’ processes and workflows, encompassing all parts of the enterprise from front-office to the back-office. As organisations seek to gain a competitive edge, they are trialling the technology in variety of ways to streamline and empower multiple use cases. Some are further than others along the path to achieving...

BLOG

FinScan Data Quality Chief Seeks to End Compliance Failure Excuses

The dog ate my homework. The train was delayed. The postman mislaid your birthday card. At one time or another, we’ve all used a weak excuse to forestall censure for an error of behaviour or judgement. And mostly, we’ve got away with it. In financial regulatory compliance, however, excuses won’t wash. Especially when it comes...

EVENT

Data Management Summit New York City

Now in its 15th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

A-Team Group’s Valuations Vendor Directory 2009

An indispensable guide to valuations professionals seeking providers of services in the asset valuations market. A-Team Group’s latest release in its series of directories – available for FREE download – focuses on vendors of valuations data, models and analytics. But this is not just another list of firms with their telephone numbers – you can get that...