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A-Team Insight Blogs

Talking Reference Data with Andrew Delaney: COREP/FINREP – Be Afraid, Be Very Afraid

Last week’s Regulatory Update seminar, hosted by Lombard Risk, was an eye-opener for anyone who thought their work was done after the past year’s huge efforts on COREP. In particular, the session focused on the challenges to come with respect to reporting under CRD IV, FINREP and incoming Asset Encumbrance (AE) rules.

Indeed, such is the complexity and magnitude of the challenge around these incoming rules that we’ll be discussing their impact on data managers at our London Data Management Summit on March 4.

The core of the Lombard seminar discussion centred on presentations on the status of the EBA’s Implementing Technical Standards (ITS), by Lombard Director of Regulatory Strategy James Phillips, and on issues related to FINREP and AE, by Lombard senior regulatory reporting analyst Andrew Winton and compliance head Robin Bridge.

The presentations offered a line-by-line schedule for the incoming reporting deadlines coming into force over the next several months. For anyone responsible for collecting, collating and reporting to meet these requirements, I’d recommend tracking down a copy the slideshow from Lombard Risk.

Without getting into the detail of the requirement, a key takeaway from the morning was Phillips’ recommendation that firms establish a ‘report factory’ to handle the reporting task introduced under these regulations and directives. The report factory should designate who will be preparing what and when, so that deadlines are met and penalties avoided. Part of this, Phillips said, is ensuring that senior management is available to achieve sign-off at the correct times.

Phillips offered a quarter-by quarter timeline for the next year or so, starting with Q1 2014, as a kind of business as usual reporting requirement for firms required to report under COREP and FINREP. It shows a gradually increasing quarterly and month reporting requirement culminating in Q2 2015, when affected firms will be required to be reporting for the key COREP and FINREP regulations as well as COREP Large Exposures (LE), COREP Liquidity Coverage (LC)/COREP LC Ratio (LCR), COREP Stable Funding (SF), Asset Encumbrance (AE), and Additional Liquidity Monitoring Metrics (ALMM).

A good starting point for more background information on the requirements can be found here: http://www.lombardrisk.com/products/regulatory-compliance/reporter/corep

And more on Lombard’s programme of Regulatory Updates can be found here: http://www.lombardrisk.com/events.

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