UK Financial Regulation and Logica IBRA

New regulation, a shifting landscape

New regulatory bodies, such as the European Banking Authority are coordinating harmonisation of European regulation. The COREP (Common Reporting) guidelines will take effect in the UK by the end of 2012. While in many European countries COREP is similar to the existing regulatory reporting standards, in the UK it introduces significant changes compared to the existing FSA requirements and return templates. The depth of information required is far greater than what UK financial institutions have become accustomed to supplying to regulators for existing live returns.

The good news is that COREP will align reporting standards for UK financial institutions with their European counterparts under a single set of guidelines.

Moving to a more holistic view

Currently, many financial institutions deliver regulatory reporting data from a black box. At the same time, internal management reports offer more qualitative analysis, derived from alternative systems. The big challenge for financial institutions is making these two reporting strands reconcilable in order to provide the regulator with data that gives a more comprehensive view of the business situation. Reporting needs to offer a more holistic view of risk undertaken by institutions, not just position disclosure. To this end, institutions will need to prove that the type of decisions and investments made are prudent and that they understand their regulatory impact at the time of trade. Banks now need to show how they arrive at certain numbers, not just produce them.

Logica IBRA

To address these global regulatory demands, Logica brings to the market Logica Insurance and Banking Reporting Architecture (IBRA).

IBRA allows financial institutions to implement a core reporting framework, and then separately add metadata to the solution with minimal IT intervention. This enables them to report against any new regulatory requirement, or expand to any region with ease, drastically reducing time to market. IBRA can be utilised to report in any country, region or against any set of regulatory requirements.

Key benefits

• Operates across multiple jurisdictions
• Enables reporting against any regulatory requirement
• Allows for return comparisons over differing versions of regulatory rules
• Allows regulatory oversight of business decisions
• Shortens time to market by minimising IT input
• Provides users with complete confidence by offering full traceability of processing steps
• Highly scalable – can process over 100 million transactions per day

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