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

HSBC’s Johnson Highlights the Deep Data Content Requirements of Solvency II

Subscribe to our newsletter

Although Solvency II may at first appear to be an insurance only focused regulation, the asset management and asset servicing communities are having to prepare for some fairly onerous deep data requirements coming their way by way of their insurance clients, warned Chris Johnson, head of product management for market data services at HSBC Securities Services, at this month’s FIMA conference in London.

The significant and prescriptive requirements across many types of reference data in support of Solvency II quantitative regulatory reporting and models has resulted in key data content challenges, he explained.

The asset management arms of various insurance firms, and their third party administrators, may have made preparations individually on the subject, but the wider need for consistent data reporting standards needs urgent consideration also compounded by the likelihood that the data requirements of Solvency II are likely to have “strong crossover with other regulations, noted Johnson. Overall, regulatory requirements are increasing across the board and this will “necessitate cross-firm consistency of data, raised quality levels and industrial scale regulatory reporting,” he said.

Looking at Solvency II in particular, monthly, quarterly, and in some cases ad hoc, quantitative reporting template (QRT) reporting requires a consistent data source, including, to an extent, the entity identification data management challenge, he noted. Although work is going on to establish a new legal entity identification (LEI) standard, such a standard is also unlikely to be in place in the required areas before firms need to begin reporting to EIOPA for Solvency II.

Johnson also pointed to the lack of a consistent industry standard instrument classification source, such as a numbering agency, as needed for the Solvency II Complementary Identification Code (CIC), as another key challenge for firms aiming to produce draft regulatory reports during 2012 as preparation to comply with the reporting deadline of January 2014.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Unlocking Transparency in Private Markets: Data-Driven Strategies in Asset Management

As asset managers continue to increase their allocations in private assets, the demand for greater transparency, risk oversight, and operational efficiency is growing rapidly. Managing private markets data presents its own set of unique challenges due to a lack of transparency, disparate sources and lack of standardization. Without reliable access, your firm may face inefficiencies,...

BLOG

Why your Technology Spend isn’t Delivering the Productivity you Expected

By Gareth Evans, Chief Product Officer, FINBOURNE. An uncomfortable truth: technology spend in asset management has surged 8.9% annually over the past five years across North America and Europe. But productivity? Flat. Cost as a share of assets under management (AUM)? No improvement. Operational expenses in other functions? Despite the promises that technology would create...

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

Directory of MiFID II Electronic Trading Venues 2018

The inaugural edition of A-Team Group’s Directory of MiFID II Electronic Trading Venues 2018 offers a guide to the European landscape resulting from new market structure introduced by the January 3, 2018 implementation of Markets in Financial Instruments Directive II (MiFID II). The directory provides detailed profiles of more than 70 venue operators and their...