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: How to find common ground for data management across multiple regulations

We’ve asked over many years how financial institutions can find common ground for data management processes to meet the requirements of multiple regulations, such as MiFID II, MiFIR, EMIR, MAR and BCBS 239. While this is a goal most firms have aspired to, the reality of pressing deadlines for regulation after regulation meant firms had...

BLOG

Data’s Evolution Continues From Cost to Core Asset: DMS New York City 2025 Preview

Modern Chief Data Officers are not only the guardians of financial institutions’ data estates, they are also the caretakers of their single-biggest asset. With every part of an organisation’s business now dependent on data, the custody of its digital information is every bit as critical to operations as the management of trading teams or even...

EVENT

TradingTech Summit New York

Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

ESG Data Handbook 2022

The ESG landscape is changing faster than anyone could have imagined even five years ago. With tens of trillions of dollars expected to have been committed to sustainable assets by the end of the decade, it’s never been more important for financial institutions of all sizes to stay abreast of changes in the ESG data...