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

Share article

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: Moving Regulatory Data to the Cloud: A Use Case Discussion

Date: 20 October 2020 Time: 11:00am ET / 4:00pm London / 5:00pm CET Migrating risk and regulatory reporting data to the cloud is turning out to be one of the hottest trends for 2020 – but not everyone is getting it right, and there are pitfalls to be avoided as well positive outcomes to be...

BLOG

Last Minute Preparations for SFTR: Are You Ready Yet?

The clock is ticking, and the initial SFTR deadline is barely a month away – but with delays, regulatory opacity and widespread industry concerns around the data challenges posed by such a substantial change, is an April implementation even achievable? Tactical approaches to compliance won’t be good enough. A strategic plan of attack is necessary...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual which took place in June 2020 was a huge success with over 1,100 delegates registered. We are currently working on our plans for 2021 and we hope to be back with an in-person event. Whatever the future holds you can guarantee our 2021 event will be back with an exceptional guest speaker line up of Regtech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment. Can't wait until 2021? make sure you sign up to our RegTech Summit Virtual, November 2020. More info...

GUIDE

Tackling the Data Management Challenges of FATCA

As the July 1, 2014 deadline for compliance with the Foreign Account Tax Compliance Act – or FATCA – approaches, financial institutions around the world are working to ensure their data management and operational systems will meet the requirements of the US legislation. This report discusses the requirements of FATCA and how the legislation is...