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: Solving the problem of integrating beneficial ownership data with client onboarding and KYC systems

Client onboarding and Know Your Customer (KYC) processes are becoming more complex as regulation drives towards the inclusion of beneficial ownership data and requires financial institutions to improve customer due diligence still further. The webinar will discuss the need for beneficial ownership data, how it can be sourced and how it can be efficiently and...

BLOG

Softwire QnA: Turning Great Ideas into Data Solutions for Institutions

UK-based Softwire offers its financial institution clients expertise in leveraging data to achieve their operational objectives. Data Management Insight spoke to Sean Judge, Softwire Client Director FS&I to find out more about the company. Data Management Insight: Hello Sean. Can you tell us when and how was Softwire created and how does it serve financial institutions? Sean Judge: Softwire...

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

Regulatory Data Handbook 2019/2020 – Seventh Edition

Welcome to A-Team Group’s best read handbook, the Regulatory Data Handbook, which is now in its seventh edition and continues to grow in terms of the number of regulations covered, the detail of each regulation and the impact that all the rules and regulations will have on data and data management at your institution. This...