The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Information Builders and Unisys Help Financial Industry Meet New Compensation Time Rules

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.

Related content

WEBINAR

Recorded Webinar: The post-Brexit UK sanctions regime – how to stay safe and compliant

When the Brexit transition period came to an end on 31 December 2020, a new sanctions regime was introduced in the UK under legislation set out in the Sanctions and Anti-Money Laundering Act 2018 (aka the Sanctions Act). The regime is fundamentally different to that of the EU, requiring financial institutions to rethink their response...

BLOG

How to Manage Dual Sanctions Compliance Post Brexit Addition of UK Regime to EU Regulation

Brexit created a number of regulatory compliance challenges for financial institutions in the UK, not least a change to sanctions regulation that is set out in the Sanctions and Anti-Money Laundering Act 2018, and is fundamentally different to EU sanctions regulation. If your organisation falls within scope of the new UK sanctions regime or both...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual brings together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...