Erste Group Bank has extended its use of Asset Control’s AC Plus data management platform to support the regulatory requirements of Packaged Retail Investment and Insurance-based Investment Products (PRIIPs) and Markets in Financial Instruments Directive II (MiFID II).
The bank, one of the largest financial institutions in Central and Eastern Europe, initially implemented an Asset Control AC Plus platform in 2012 to manage market risk. Subsequently, the bank decided to expand its use of Asset Control to cover reference data and compliance with PRIIPs and MiFID II. The solution in this use case creates a central security master for the institution and most of its subsidiaries in seven countries, enabling the input, aggregation, normalisation and distribution of central and local data sources. This will help the bank produce Key Information Documents (KIDs) required by PRIIPs.
Michael Wilhelm, chief information officer, group corporates and markets at Erste Group, says: “PRIIPs compliance requires each subsidiary or savings bank within Erste Group to maintain its own products, and therefore the associated KIDs, which include a combination of both central and local data sources. There are strict guidelines regarding the ownership and management of the data, which led us to recognise the need for a strong data technology solution. We needed a platform that could manage tenant-specific datasets alongside a global master dataset. Having worked with Asset Control previously, we selected AC Plus for the strength of its core functionality in modelling, normalising, consolidating and distributing reference data.”
While the regulatory and market risk solutions are based on separate databases, they do share the same infrastructure, with the regulatory solution including Asset Control’s AC Connect data distribution model to push central security master changes to the rest of the group.
The bank plans to go live with the PRIIPs solution in September 2017, ahead of the January 2018 compliance deadline. Recognising the overlap between PRIIPs and MiFID II, it will then use the same central security master architecture to meet MiFID II requirements including instrument classification, trading venues representation, and pre- and post-trade reporting.
Mark Hepsworth, CEO of Asset Control, describes Erste Group as a good example of clients that have invested in Asset Control solutions that are going well and are now turning their attention to regulatory use cases and extending their relationship with the company. He adds: “Central Europe is an important region for Asset Control. We have just expanded our sales team in the area and are discussing regulatory initiatives as well as data management requirements to manage more data with clients and prospects.”
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