We interpret and implement responsive solutions to comply with complex European and domestic regulatory environments

The increasing demands of regulation and compliance pose a significant challenge to the Financial Services Industry

Regulatory initiatives such as IFRS9 and BCBS239 will increasingly require greater transparency, granularity, timeliness and automation of reporting.

Organisations across the sector are striving to meet increasing regulatory demands typically by increasing manpower.  However meeting the challenge in a more cost effective way really requires a re-appraisal of the data and reporting platforms supporting regulatory reporting. 

Common regulatory issues and challenges can include the following:

  • Data quality – Data quality issues present a major barrier to accuracy, auditability and traceability required for regulatory reporting
  • Transparency and granularity – Regulators are demanding higher levels of transparency which requires increasing levels of granularity, as with IFRS9, which requires impairment calculations to be both forward facing and calculated at the account or near-account level
  • Timely regulatory reporting – BCBS239 introduces the principle of timeliness (albeit without specifying standards), but the time scales of regulatory reporting are shortening with increased emphasis on intra-day reporting
  • Automation – increasing levels of automation are being demanded by both regulators, (e.g. with BCBS239) to reduce the risk of manual errors, and shareholders, to reduce the costs of delivering regulatory reporting
  • Remediation management - financial companies must compensate customers if they have mis-sold them or charged them incorrectly

Sopra Steria supports major UK Financial Services institutions across a range of regulatory frameworks. Our expertise is in interpreting and implementing responsive solutions which comply with the complex European and domestic regulatory environment for clients. In order to assure the accuracy and completeness of reported data, for both established and challenger institutions, we consolidate data from multiple systems to create a single view of customers, portfolios, products and policies. In addition, we identify gaps in existing business intelligence systems and capabilities to support clients in the submission of accurate regulatory reports.

Our experience

 We deliver industry leading application management to the Financial Conduct Authority (FCA) and have delivered a regulatory solution for the Alternative Investment Fund Managers Directive

  For one of the world’s largest banks, we created a centralised data set to support its global stress testing requirements

 We're responsible for defining, delivering and supporting the end-to-end delivery of multiple COREP and FINREP submissions for Retail Bank clients

 In addition to its COREP and FINREP experience, we've supported clients in a wide range of compliance reporting activities including other Basel reporting (for Pillar 3, BCBS239), IFRS9 initiatives, Firm Data Submission Framework, European Deposit Guarantee Scheme and Financial Services Compensation Scheme, reporting required following the Mortgage Market Review, complaints reporting and conduct risk monitoring

 We worked with a leading UK
Life & Pensions Provider
to redesign the Client’s valuation data provisioning process, implementing a new process that removed reliance on end user computing applications and ensured that the Solvency II data quality and data lineage requirements were met

 To deliver its remit of protecting investors across the EU and fostering stable, well-functioning financial markets, the European Securities and Markets Authority (ESMA) chose us as its strategic IT partner