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: Approaches to data quality

Underpinning all data management initiatives is the fundamental need to get data quality right. Poor data quality can be costly, impact customer service, lead to errors in risk management and regulatory reporting, and more. So, how can you improve data quality? How can you use rules, standardisation and technology to make improvements? And how is...

BLOG

From Batch to Real-Time: LSEG Reinvents AML Screening with World-Check On Demand

As financial institutions accelerate toward real-time payments and digital onboarding, compliance teams face mounting pressure to keep customer screening instant, accurate and demonstrable. In response, the London Stock Exchange Group (LSEG) has introduced World-Check On Demand – a new cloud-based service designed to deliver “real-time risk intelligence” through API integration, allowing institutions to embed sanctions...

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

Enterprise Data Management, 2009 Edition

This year has truly been a year of change for the data management community. Regulators and industry participants alike have been keenly focused on the importance of data with regards to compliance and risk management considerations. The UK Financial Services Authority’s fining of Barclays for transaction reporting failures as a result of inconsistent underlying reference...