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RegTech Insight Brief

European Parliament Adopts CSRD

The European Union’s parliament has endorsed the creation of the Corporate Sustainability Reporting Directive (CSRD), the regulation that’s intended to oblige larger non-financial companies to disclose their ESG performance. The parliament overwhelmingly approved the formation of the framework, which is to be implemented by the end of next year.

Financial Institutions Spend $1,500 to $3,000 to Complete One Client KYC Review

Financial institutions are spending millions of dollars every year inefficiently onboarding and maintaining clients, according to research from Fenergo, a provider of Know Your Customer (KYC) and Client Lifecycle Management (CLM) software solutions. A global study of over 1,000 C-level executives across corporate and institutional banks found that, on average, over half are spending between $1,500 and $3,000 to complete just one client KYC review.

The findings also show over half of financial institutions spending between 61 and 150 days on KYC reviews for clients, much of which is spent gathering and inputting data across multiple systems. Overall, more than 80% of respondents have between 1,000 and 2,500 employees working on KYC tasks. Some 90% said labour-intensive KYC impacts their ability to make better risk decisions. However, the data also shows financial institutions now focusing investment on automation with 62% prioritising spend for technology.

Many Firms Are Not Data-Ready for SFDR Level 2

Many financial institutions have yet to grasp the data implications of the European Union’s ESG reporting regulations, while others are scrambling to put in place processes to comply with the developing set of disclosure rules. Read the full story on ESG Insight here.

Many Firms Are Not Data-Ready for SFDR Level 2

Many financial institutions have yet to grasp the data implications of the European Union’s ESG reporting regulations, while others are scrambling to put in place processes to comply with the developing set of disclosure rules. Read the full story on ESG Insight here.

RiskBusiness Acquires Gold Operational Loss Database

RiskBusiness Services has acquired the Global Operational Loss Database (Gold) from partner UK Finance, the former British Bankers Association (BBA). RiskBusiness, a UK-based provider of SaaS-based compliance solutions, plans to offer the Gold database to allow firms to benchmark and measure their exposures to operational risk.

Mike Finlay, CEO and Chief Product Architect, RiskBusiness, says: “As the regulatory community have recognised that theoretical capital calculation models do not, in of themselves, reduce a firm’s exposure to operational risk, so have firms recognized that there are other uses for external loss data than just for capital modelling purposes. If a firm wishes to manage operational or non-financial risk within its risk appetite, then it needs to be able to benchmark and measure itself against its peers in the industry. Gold by RiskBusiness provides exactly the necessary, high quality, external dataset to facilitate proactive risk management, benchmarking and informed decision making.”

Euroclear to Use Taskize for CSDR Penalty Appeals

Euroclear is expanding its use of Taskize’s collaboration tools as the preferred channel for its 2,000+ members to appeal penalties at both the International Central Securities Depository (ICSD) and its domestic CSDs, under the upcoming CSDR Settlement Discipline Regime. Using a Taskize Bubble that has been specifically built around a penalty appeal template, Euroclear members will have a single digital channel to manage the penalties and appeals process.

Trade Surveillance Hindered by Fragmented Systems, VoxSmart Study Finds

Almost 70% of financial institutions believe that fragmentation of their approach due to siloed surveillance systems increases the risk of market abuse, according to a VoxSmart survey of almost 80 investment banks, brokers, and investment managers. The findings come as the potential for market abuse continues to accelerate globally as financial institutions continue to adjust to the new hybrid working world, according to the company.

BNP Paribas Adds IHS Markit as Calculator for Uncleared Margin Rules

BNP Paribas Securities Services has added IHS Markit as an initial margin calculation source to its existing service for clients that are in-scope for Uncleared Margin Rules (UMR) in derivatives markets. The expanded collaboration complements the valuations services that IHS Markit has provided BNP Paribas Securities Services since 2012. BNP Paribas offers a full end-to-end solution for Regulatory Initial Margin (IM) with IM Calculation, Exposure Management and IM Segregation in Triparty.

BidFX Links to Osttra for FX Clearing Under UMR Phase 6

BidFX, a provider of cloud-based foreign exchange trading solutions, has integrated Osttra’s clearing connectivity service, allowing investment managers to submit trades directly to leading CCPs. The development, which gives BidFX clients wishing to clear trades access to an established community of more than 30 executing bank clearing counterparties, is aimed at helping investment managers who choose to clear more of their FX flow under Phase 6 of the Uncleared Margin Rules (UMR), which comes into force in September. Osttra is a joint venture between IHS Markit and CME Group and combines the MarkitServ, Traiana, TriOptima and Reset businesses.

SteelEye Gains SOC 2 Certification

Compliance and data analytics provider SteelEye has secured System and Organisation Controls (SOC) 2 certification. Defined by the American Institute of CPAs (AICPA), and covering the principles of Security, Availability, Confidentiality, Processing Integrity and Privacy, SOC 2 assesses firms’ safeguarding of customer data. The accreditation underpins SteelEye’s efforts to ensure robust data security.