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

Deutsche Bank’s Scott and Northern Trust’s Chapman Highlight the Regulatory Deluge Facing Ops Teams in 2012

Subscribe to our newsletter

There are so many regulations facing the corporate actions and securities operations sector that back office teams may be hard pushed to get on with their day job, said Justin Chapman, global head of industry management, operations and technology at Northern Trust, at this month’s CorpActions 2011 conference in London. Nick Scott, managing director and head of global asset services at Deutsche Bank, added that one of the most onerous regulations on the table is the US Foreign Account Tax Compliance Act (FATCA), which will prove competition for corporate actions’ budgets.

The task for global securities services market players of meeting so many different (sometimes conflicting) reporting requirements across a number of jurisdictions will take a lot of time and energy, noted panellists debating the future of the corporate actions space. This deluge of regulation will therefore take C level investment and attention away from ongoing corporate actions automation projects.

Chapman created a slide for the event to highlight all of the global regulatory developments that are impacting the sector, thus emphasising the scale of the problem:

“All of this will mean that it will be that much harder to convince senior management to sign off on spend for corporate actions projects. Regulatory risk is being prioritised but, equally, you cannot ignore the potential costs and risks involved in getting corporate actions wrong,” said Deutsche Bank’s Scott.

He then elaborated on the laborious process his own team had to go through to get senior buy in to his own firm’s corporate actions project. “The chief challenge for us was to justify the spend of the project that we kicked off with TCS. We had to overcome the perceptions of the corporate actions space by different groups in Deutsche Bank at the outset,” he said. The TCS partner project therefore required a great degree of transparency and dialogue with the rest of the firm in order to enable other teams to feel some level of benefit and participation.

“We now have our hands around the process issues and have added in a lot of automation,” he added. Announcements has been a key area to tackle at the outset and the firm is now able to compare five different data vendor feeds in this regard and then scrub this data to ensure it is validated and correct. The errors and timeliness of the data providers’ feeds can also be measured, which allows Deutsche Bank to track data quality across vendors. The next area of focus for his team will be to enable the generation of notifications in a completely automated fashion, according to Scott.

However, all of this work could be made much harder via the distraction resulting from new regulatory requirements in so many new areas, panellists noted. Basel III, MiFID II, FATCA and a whole host of other new regulations are “just over the hill,” said Scott, and this could prove a challenge in terms of both buy in and new requirements that may impact the corporate actions processing world.

Ulrich Stritzke, head of securities and asset services operations at Credit Suisse, tried to put a positive spin on the regulatory deluge, contending that if levels of competition rise in the market as a result of these regulatory developments, efficiency will be much more of a focus. Ergo corporate actions automation projects will continue to be a focus because could represent a prime area for service level differentiation.

Given the evident and continuing lack of buy in to ISO 20022, the standards adoption process within smaller institutions may be seriously hindered by these regulatory developments, agreed panellists. Paul Bodart, executive vice president, CEO and head of EMEA global operations at Bank of New York Mellon, noted that at first glance, ISO 20022 appeared to be something of a “monster.” However, given the size of BNY Mellon as an organisation, it could cope with the predicted US$20 million cost of adoption of the new standard.

Subscribe to our newsletter

Related content


Recorded Webinar: Cross-Regulation Data Consistency and Accuracy

Regulatory reporting obligations continue to expand, bringing with them more overlaps of data elements across reporting regimes. As many firms struggle with the accuracy and completeness of individual reporting obligations, regulators have increasingly begun to focus on cross-regulation data consistency in their data validations and examination processes. This webinar will identify cases of data overlap...


RegCentric Wins A-Team Group Award for Best Regulatory Consultancy in APAC

Sydney, Australia-based RegCentric has won the award for Best Regulatory Consultancy in A-Team Group’s first live RegTech Insight Awards – APAC 2022. The awards celebrate leading providers of regulatory solutions, services and consultancy to capital markets participants across Asia-Pacific. The winners are named after A-Team Group’s RegTech Insight community votes for its favourite providers in...


Data Management Summit New York City

Now in its 12th year, the Data Management Summit (DMS) in New York brings together the North American, capital markets enterprise data management community, to explore the evolution of data strategy and how to leverage data to drive compliance and business insight.


Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...