Financial Services Authority, UK Integrated Regulatory

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Transcript Financial Services Authority, UK Integrated Regulatory

Financial Services Authority, UK
Integrated Regulatory Returns Programme
Presented by Lindsay Thomas
Director Knowledge Management
What I will cover today
• Background
• Our programme
• Timelines
• Lessons learnt so far
Background to the task
FSA has unified 9 legacy regulators:
• 9 legacy reporting categories.
• 43 different reporting forms.
• 50 firm types.
Lots of duplication in regulatory data.
Drivers of change in reporting requirement
Need to better
equip us to
meet statutory
objectives
Greater focus
on reporting
by what a firm
does
Adoption of
risk based
approach to
regulation
IRR
Changes
from EU
Directives etc.,
Increase
in number of
firms we
regulate
Regulatory reporting – a new integrated approach
1
2
Reporting
aligned to a
firm’s yearend with
standardised
reporting
frequencies
& submission
time limits
Firms to
check
annually that
their
Standing
Data is
correct
3
Mandatory
electronic
Reporting
(MER)
4
Revised
complaints
data
Strategic IRR Programme
• Mandatory Electronic Reporting for all regulated firms
• Web forms AND system-to-system submission using XBRL
• Published taxonomy defining concepts and terms for
regulatory reporting
• ‘De-duplication’ – firms submitting returns for more than one
activity are only asked for each data set once (eg, balance
sheet, currently appears in most returns)
• Plans for testing, pilots and training facilities
IRR reporting requirements
Reporting Groups
Complaints
Mortgage, General
Insurance & Retail
Investments
Insurance: Published
Annual Return
Investment Activities
(excluding retail
investment activities)
Deposit (& Principal
Position) Taking
Publish
CP
Sep ’03
CP198
Publish
PS
Implement
new RR
MER
from…
March ’04
PS 04/08
April ‘05
July ‘05
July ’05/
Sept ’03 March ’04
CP197 PS 04/09
April ‘05
Sep ’03
CP202
Nov ’04
Jan ’06
Jan ’07
Jan ’05*
CP
Aug ‘05
2007
TBC
Jan ’05*
CP
Aug ‘05
2007
TBC
*Currently planning to cover in the Strengthening Capital Standards Consultation Paper (CP)
Jan ‘07
Validation of the new project and timeline
• Major project shaping needs further
refinement
• Report out in January 05
17 of 19
Information processes summary
Act
Grow
Features
Collect
•Web based
communications
•Secure channels
•Structured
documents
•Connected
directories &
databases
•Financial returns
•On-line
authorisation
•Transactional data
•Meta data
•Risk Analysis
•Timely decisions
•Intelligent
automation and
tracking
•informed
enforcement
•“The Learning
Organisation”
•Intelligent,
learning systems
•Responsive &
adaptable
workforce
Tools
Connect
•Browser based
interface
•XML XBRL
•Workflow
•Content
Management &
meta data
•KM Desktop
•Tagging and autoCategories
•Personalisation
•Real-time
collaboration
•Enhanced meta
data
•Integrated
systems
•Risk assessment
•Decision support
tools
•Case management
•Intuitive support
applications
•Adaptive to
individual profiles
•Seamless part of
work process
Major industry infrastructure programmes
The need:
– Honesty
– Transparency
– Trust
– Delivery
– Outcomes
Lessons I have already learnt
There are three key things different about
this programme
– Manage the clash of interests
– Setting data standards
– See the wider emerging pan European and
global financial services agenda
Clash of interests
• Excitement of new ideas
• Investment by software providers
• Reporting firms
• Change management
The importance of standards
• Regulators are standard setting bodies
• Too little appreciation of data
• Co-operating on industry taxonomies
• Providing the basis for agreement
• Expanding the consensus
Wider changes
•
•
•
•
•
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Basel 2
Financial Services Action Plan
IFRS
MiFiD (ISD2)
CESR/CIOPS/CEBS
Convergence of national statistics, tax,
accounting and reporting data standards
Conclusions
• Be careful
• Be very careful this is an industry infrastructure
programme
• Don’t get carried away but be ambitious
• Further information
– www.fsa.gov.uk/regulatory_reporting
– [email protected]