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

A-Team Insight Blogs

SimCorp Releases IFRS 9 Guide for Investment Firms

SimCorp, a leading provider of highly specialised software and expertise for the investment industry, announced today its guide to the International Financial Reporting Standard (IFRS) 9. The guide examines how investment firms can benefit from new measurement models and how they can leverage their IT platform to ensure compliance with the new regulation.

The IFRS 9 guide looks at how firms can prepare themselves for the new regulatory standards set by IFRS 9. The article also suggests that IFRS represents a “golden opportunity” for investment managers in terms of accounting policies. Rather than abiding by a four-pronged classification system, IFRS 9 condenses financial asset categories down to two. 

IFRS 9, set to roll out on 1 January 2013, governs the complex and rule-based provisions of tainting, reclassification and impairment as required by the current International Accounting Standard (ISA) 39. The new regulation requires firms to classify their assets into one of two measurement models: (1) the amortized cost model, or (2) the fair value model. These classifications are aimed at simplifying the reporting process mandated by the regulation and stand to benefit the increasingly global marketplace of the investment management industry.

David Mackaway, general manager of operations for Australia-based Challenger and author of the article, comments on the role of IT in ensuring compliance. He said, “Challenger was fortunate to have strategically made the decision to have a centralised and very flexible asset system to cater for its business needs, provided by SimCorp Dimension. We put a great deal of effort into the implementation of SimCorp Dimension, which in the end has meant very limited additional effort on our part in implementing IFRS 9.”

“As the regulatory environment continues to evolve, we are committed to providing our clients with an IT platform that can support various needs,” said Peter L. Ravn, chief executive officer at SimCorp. “SimCorp Dimension’s flexibility in terms of functionality and asset-coverage allows our customers to ease into this new regulatory environment and ensure compliance in the future.”

Related content

WEBINAR

Upcoming Webinar: FINRA CAT CAIS: What to Expect – Giving Regulators Full Access to Your Customer & Account Data

Date: 3 November 2021 Time: 11:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Join n-Tier and a panel of industry experts to discuss implications of the SEC’s Consolidated Audit Trail (CAT) Customer & Account Information System (CAIS) Phase 2e. The initial phase of CAIS was the start of a new era for...

BLOG

GLEIF Moves LEI Uses Cases on from Regulatory Compliance to Digital Identity Products

The Global Legal Entity Identifier Foundation (GLEIF) is extending use cases of the LEI beyond regulatory reporting to solutions initially including digital certificates. The first commercial demonstration of LEIs embedded within digital certificates has been made by the China Financial Certification Authority (CFCA), which has also signed up as a validation agent within the global...

EVENT

TradingTech Summit London

TradingTech Summit London will explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility. Leveraging the cloud, AI and ML technologies to get an edge, automate processes and simplify operations in a cost effective way is the name of the game and will share practical insight from practitioners and technology leaders who are innovating and driving forward change in trading operations.

GUIDE

ESG Handbook 2021

A-Team Group’s ESG Handbook 2021 is a ‘must read’ for all capital markets participants, data vendors and solutions providers involved in Environmental, Social and Governance (ESG) investing and product development. It includes extensive coverage of all elements of ESG, from an initial definition and why ESG is important, to existing and emerging regulations, data challenges...