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: Navigating a Complex World: Best Data Practices in Sanctions Screening

As rising geopolitical uncertainty prompts an intensification in the complexity and volume of global economic and financial sanctions, banks and financial institutions are faced with a daunting set of new compliance challenges. The risk of inadvertently engaging with sanctioned securities has never been higher and the penalties for doing so are harsh. Traditional sanctions screening...

BLOG

Stage is Set for 16th Annual Data Management Summit London

The 16th annual A-Team Group Data Management Summit London gets underway tomorrow morning, with another high-level gathering of industry experts to look over the state of play in data management within capital markets. A full-day of panel discussions, debate and networking will take place as well as a slew of keynote addresses from some of...

EVENT

AI in Capital Markets Summit London

Now in its 3rd year, the AI in Capital Markets Summit returns with a focus on the practicalities of onboarding AI enterprise wide for business value creation. Whilst AI offers huge potential to revolutionise capital markets operations many are struggling to move beyond pilot phase to generate substantial value from AI.

GUIDE

Enterprise Data Management Europe 2010

he US may seem to be ahead of the rest of the world in terms of championing the data management cause with the inclusion of reference data focused items in the Dodd-Frank Act, but Europe is not too far behind. Senior European level officials such as European Central Bank (ECB) president Jean-Claude Trichet have taken...