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SIX Financial Information Takes Solvency II Compliance Solution to Market

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SIX Financial Information has brought together the reference data requirements of Solvency II to deliver a compliance service that is available immediately and is being implemented with initial insurance clients ahead of take-up among asset managers.

The service uses reference data already owned by SIX Financial Information as well as some new attributes. These include the Complementary Identifier Code (CIC), an asset classification schema designed specifically for Solvency II and for which SIX Financial Information will generate CICs at both the instrument and individual market listing levels. NACE industrial classifications are also part of the service, alongside GICS, SIC, ICB and proprietary codes already in the company’s database. Pre-Legal Entity Identifiers, mandated for use in Solvency II in September 2013, are also included where they are available.

SIX Financial Information is offering a standard Solvency II service, providing all the reference data required to calculate capital adequacy under Pillar 1 of Solvency II, as well as the data required for reporting and disclosure under Pillar 3. A custom service supports more complex business requirements, with SIX Financial Information carrying out additional data derivations for individual clients to provide, perhaps, calculations on the underlying reference data in the standard service.

Darren Marsh, senior product manager at SIX Financial Information, explains: “Solvency II presents firms with a huge data management challenge and requires high volumes of granular reference data and analytics to be brought together for risk modeling, calculation of Solvency capital ratios and reporting. It is unlikely that firms that must comply with the directive have all the information in a single system. To resolve this problem, SIX Financial Information can provide clients with the high quality asset data they need in a consistent and transparent way, helping them support the data governance requirements for accuracy, completeness and appropriateness of data.”

While some Solvency II compliance projects were put on hold a year or so ago because of the delay in reaching an agreement in the Omnibus II trialogue, Marsh says a final mandate for implementation on January 1, 2016, as well as plans by some National Competent Authorities to accelerate implementation under interim measures before 2016, have kick-started a return to work on Solvency II.

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