Mizuho International, the London-based securities and investment banking arm of Mizuho Financial Group, is building on an existing regulatory data management relationship with Wolters Kluwer Financial Services to meet the needs of Basel III reporting.
The bank has licensed Wolters Kluwer’s Basel III compliant common reporting (CoRep), financial reporting (FinRep) and liquidity coverage ratio modules to automate regulatory reports that were outlined in May 2011 by the European Banking Authority and Financial Services Authority (FSA), and are part of the Capital Requirements Directive IV (CRD IV) and Basel III. Although the final details of CRD IV have yet to be finalised, UK firms must be ready to submit required regulatory returns when CoRep goes live. At the moment, this is expected to be on 1 January 2014.
Mizuho International has been using Wolters Kluwer’s risk and regulatory data mart for about five years and surveyed the market before selecting the company’s Basel III reporting modules. The data mart underpins Wolters Kluwer’s regulatory reporting system and encompasses a global regulatory data model that collates, validates and reconciles data from multiple sources and back-office systems, making the data accessible as a single data set to support automated reporting.
Simon Norris, executive director, information systems department at Mizuho International, says: “Although we had worked with Wolters Kluwer Financial Services for many years and used its products for our reporting capital and Bank of England reporting, the scale of regulatory change was so vast we were required to step back and assess all solutions in the market. We chose Wolters Kluwer again because of the breadth of reporting and its business model that will provide ongoing software updates so that we remain compliant with regulations as they change.”
As part of the regulatory reporting service, Mizuho International will also subscribe to Wolters Kluwer’s Regulatory Update Service, giving it access to up-to-date and compliant regulatory tools including templates, data management and market risk and credit calculations.
Stephen Heron, sales director UK & Ireland at Wolters Kluwer, explains: “As we have invested in a common data model for regulation and risk, additions such as CoRep mean we don’t have to change the base data too much. We will supplement our data model and tell Mizuho what more is needed for the bank to meet CoRep requirements. There are about 2,000 cells in FSA reports, but CoRep reports have about 20,000 cells. This is complicated reporting, but we have analysed the regulations and created a rule for each cell so that reports can be automated.”