Finance & Risks: A common approach to tackle regulatory reporting requirements

Regulatory news continuously generate changes (ex.: ESG or Basel 4) with which institutions must comply. To face these challenges, it is interesting to opt for a cross-functional approach to carry out these changes while respecting the regulatory milestones and reporting requirements (and therefore to avoid dealing with these requests individually).

Some key developments involve new data with multiple regulatory uses. One challenge will be to identify the right level to source this data according to the existing operating model and avoid multiple workflows and overload. Within this frame, beyond the regulatory calendar, a data with several uses will be sourced as soon as possible to anticipate future needs

Valuation Data Set (VDS) and Bail-in:

• Valuation Data Set: The SRB approach to valuation relies on banks’ ability (on the assets’ side) to provide accurate and timely information in case of resolution. It consists of evaluating the capacity of banks to collect and provide this information on a timely basis to resolution authorities and/or valuers.
• Bail-in: The SRB expects that the fully-fledged version of the bail-in playbooks covers all bail-inable instruments. The scope of instruments to be covered in the playbook may vary from bank to bank, depending on the bank’s liability structure and the level of progress in the operationalisation of the bail-in.

CSRD is the latest European regulation concerning financial and non – financial companies. The SFDR and the EU Taxonomy led the change for sustainability integration and corporate reporting.  It introduces new developments such as Assurance requirements, the detailed disclosure requirements and exemption for subsidiaries and non- EU Parents companies. 

Below are presented the main regulatory evolutions regarding reporting requirements which will involve the Finance / Risk / Data Office teams and you will find a detailed view in the following slides.