48 COREP validations – how will you know if your disclosures fail the test?

Recently the FCA/PRA announced a significant change to its COREP reporting requirements [http://www.fca.org.uk/your-fca/documents/crd-iv-validations-for-q1-reporting]. There are a number of known errors in the EBA taxonomy and consequently the UK regulator had previously indicated that it would be treating all validations as ‘warnings’ that would not result in failed submissions.

However, upon further investigation the FCA has now issued a revised notice asserting that it will be checking a total of 48 validations (relating to COREP Own Funds and Leverage, Large Exposures, LCR and NSFR) in disclosures issued to meet the impending 30th June remittance deadline. Outside the 48 validations highlighted above it will continue to ignore the other incorrect EBA validations and treat them merely as warnings for GABRIEL submission purposes.

This means that filers must be vigilant and their XBRL production systems must be able to cater for this new set of important validation rules. But, how do you know whether your XBRL documents will pass the test?

There’s one sure way to find out – by using Magnify®, our XBRL document review product. The new validations have now been incorporated into Magnify, so it’s easy to check your submissions against the new rules. If there’s a problem, Magnify will highlight the error so that you can take remedial action. The even better news is that Magnify also lets you understand what is actually contained within the XBRL document you’re about to submit; it renders the document in a human-readable format, so you don’t have to struggle with the impenetrable XBRL. So, when senior executives need to sign off the completed reports, Magnify shows clearly what is being reported.

In short, Magnify can save you time and effort – and offers peace of mind that your disclosures will not be rejected

Magnify handles EBA rules blacklist

The EBA has now produced an official “black list” of rules that should be ignored.  The full list can be found on the EBA website.

Helpfully, Magnify®, CoreFiling’s XBRL document review product, already has black list support, so that this list (or any further updates) can be incorporated in order to suppress the blacklisted formula.

Who helps when your COREP submissions fail?

The market is rife with vendors offering ‘inexpensive’ solutions to the imminent problem of filing COREP disclosures to National Competent Authorities around Europe.  In particular, smaller firms with relatively straightforward needs may be tempted by the promise of ‘cheap and cheerful’ products.  Creating the XBRL documents is a fairly simple process, but organisations should think through the wider issues.  Licensing the right application will not be enough, whatever your vendor tells you.

Many regulators are still finalising their reporting rules, but even at this late stage the EBA’s guidelines are quite likely to change before the due date for the first submissions.  Some vendors will struggle to cope when the regulatory requirements change, not only before the initial filing date, but when further alterations occur, as they will surely do over time.  To what extent do vendors really understand the implications?  How quickly can they react to ensure that fully compliant XBRL is generated?  What happens if things go wrong?

Proven XBRL expertise is vital, especially at the service level, if vendors are to overcome any problems encountered by their clients.

What makes CoreFiling different?  We have been developing XBRL products and offering expert XBRL consultancy for well over ten years.  CoreFiling are the firm that provides XBRL support to many of the world’s leading integrators and consultancy firms.  Our expertise is built on a deep understanding of the XBRL standard.  CoreFiling are active contributors to the XBRL consortium that oversees the XBRL specifications; the company undertook most of the work in developing the key technical specification behind Eurofiling.  This affords us deep insight into the standard and informs our products and services.

Seahorse®, available via key CoreFiling partners, provides a straightforward, Excel-based solution for COREP, FINREP and Solvency II filing.  However, behind Seahorse lies over 200 man-years of intellectual property and proven expertise.

You may be thinking that Seahorse sounds fine for smaller organisations, but what about larger financial institutions with more complex needs?

More in a few days’ time…

Will software vendors be ready for COREP reporting?

The new CRD IV banking directive is about to take effect.  But how prepared are the traditional banking software vendors to help their clients issue their first reports?

From April the UK Financial Conduct Authority (FCA), for example, will be collecting the first COREP reports in the new XBRL (eXtensible Business Reporting Language) format against the taxonomy issued by the European Banking Authority.

There are, however, growing concerns around the availability of fully functional, XBRL-enabled software in time to meet the deadlines imposed by the new reporting regime.  Several traditional suppliers are likely to fail to meet the due date, especially as changes to the taxonomy may occur even at this late stage, and those with hard-coded solutions may struggle to implement the necessary changes in time.

However, there is an alternative for beleaguered vendors.

CoreFiling is offering a rapid enablement option to help vendors over the first reporting hurdle, followed by further assistance to XBRL-enable their offerings.

To overcome the immediate reporting obstacle, CoreFiling’s Seahorse® provides simple to use, SaaS-based  Zero-Tag™ technology for the generation of Excel forms that, when completed, are seamlessly turned into compliant XBRL documents ready for submission.

In a second phase, vendors can then take advantage of CoreFiling’s in-depth XBRL expertise to incorporate fully standards-based components into their offerings and ensure the output of fully valid XBRL documents.  True North®, CoreFiling’s flagship XBRL processor and validator, is a key element in this second stage.  It’s the component of choice for the FCA’s own EBA reporting requirements and validation of COREP and FINREP filings received from the UK financial market, so vendors can be sure they are validating documents to the same exacting standards as the regulator.

How fair are the new banking regulations coming out of Brussels?

Sharon Bowles, one of the most influential Britons in Brussels, will be talking about this on Monday in London.  She will talk in her keynote address at “Preparing for CRD IV Reporting” about the challenges facing the banking community and how CRD IV will impact on it.  In the forefront of the drive to improve European banking regulation since the financial crisis, Sharon has devoted herself to building a regulatory system which will provide stability in Europe without putting unfair pressure on the City of London.

The keynote address is one of a series of addresses from speakers across the European regulatory community including the European Central Bank and speakers with long experience at the International Monetary Fund and national regulators.

There are only three days before the conference!

Register now

The conference will also be open to registration from 8 a.m. on the day of the event.

Are you ready for the CRDIV mandate?

Important changes in bank reporting under CRD IV, the new Capital Requirements Directive, the European enactment of the Basel III legislation, are due to come into force starting from 1st January 2014.

Time is rapidly running out. Despite this, there is evidence to suggest that few banks are gearing up to ensure that their internal processes are ‘fit for purpose’ for the arrival of the new reporting regime.

One reason is that there is still a great deal of confusion about what the new regulations actually entail. This is particularly true for the XBRL technology and related taxonomies required to turn the new reporting regime into reality. It is expected that those taxonomies will not emerge in their final form until the end of the third quarter of 2013, giving very little time before the first COREP reports need to be submitted on 1st Jan 2014.

The issue is also blurred by the continued political debate in the European Parliament about bankers’ bonuses, making people believe that this is the only issue. Clearly this is not the case.

The CRD IV reporting changes in fact go much deeper.

Under the new CRD IV regulations, all of Europe’s banks will have to file increased amounts of exposure and risk data to their respective regulators. It may seem like an additional burden, but handled properly this new data will not only help the banks to gain a competitive edge, but might also prevent another bank collapse.

The ‘Preparing for CRD IV reporting’ conference on June 17th at the London Hilton on Park Lane provides a timely opportunity for regulators to explain the case for the new regulation and for banks to gain valuable insight into the reporting changes and how they might turn them to their advantage.

The conference focuses squarely on the regulatory aspects of CRD IV/Basel III and the underlying business issues, with passing mention of the technology that will underpin the submission of the enhanced reports.

During the business track, presenters will explore the issue of ROI and how, by implementing the new compliance requirements correctly, banks will have the opportunity to outperform their competitors. At the moment, many banks view the new regime only in terms of additional investment. The ROI session answers these concerns and explains why investment in compliance will be abundantly worthwhile. However, doing it properly is the key, and there are issues that need to be fully thought through, e.g. How can the new reports be pulled together? How are they to be approved and signed off? How can banks ensure that data is consistent across all submissions made to their various regulatory bodies?

Both the business and the technical tracks will be highly interactive, with ample time devoted to Q&A allowing delegates to enter into the discussion. The conference also features three key representatives from the EBA, the body responsible for translating the technical standards from the legislative requirements behind the new reporting regime. There’s a chance to quiz the EBA further about the ITS (Implementing Technical Standards) which is key to the process, yet not expected to be finalised until later this year.

It promises to be an interesting debate.

For more information and registration: http://www.xbrl.org.uk/conference/

XBRL comes of age with Basel III reporting

Europe’s new Basel III capital regulations, newly enacted as CRD IV, will introduce XBRL-based data reporting to new sectors and markets. In what is arguably the biggest upheaval in European banking since the introduction of the Euro, CRD IV will mandate the collection of increasing amounts of banking capital and exposure data throughout the countries of the European Union. For the first time, XBRL will be at the heart of Europe’s financial regulatory systems, joining the tax authorities and business registers who have hitherto been pioneers of XBRL-based business reporting in Europe.

The main players in this drama will be present at a major conference in London on 17 June, “Preparing for CRD IV Reporting”. Chaired by Robert Driver, the British Bankers’ Association’s Policy Expert on COREP and FINREP, the conference will explore the new regulatory environment with speakers from the European Parliament and the European Central Bank, and will discuss the implications of the new regime for both banks and regulators. Presentation topics will include:

  • Regulatory objectives in processing XBRL-based big data
  • Driving financial outperformance through compliance
  • Improving ROI in financial reporting
  • The use of XBRL standards in reducing the reporting burden
  • Ensuring traceability and consistency in XBRL reporting
  • Management challenges around regulatory reporting

Further details….

So CRD IV has been agreed, what about the ITS?

The last public draft of the EBA’s model for implementing technical standards on supervisory reporting (the ITS) was issued on 15 March 2013. That was followed on 16 April with the approval of the CRD IV by the European Parliament. So the banks are expecting to have their data reporting systems ready by 1 January 2014 – but they can’t put them in place until the ITS has been finalised.

The EBA is expecting to deliver the ITS, to schedule, in good time for the banks to comply. But financial institutions wanting to start planning on the basis of the draft ITS are at risk unless they can be confident about the shape of the final version. Fortunately, help is at hand.

The EBA is supporting a major compliance conference, “Preparing for CRD IV Reporting” in London on 17 June. Andreas Weller, Head of IT at the EBA, and his colleagues Meri Rimmanen and Wolfgang Strohbach, will be present, with presentations covering their expectations for COREP and FINREP. The format of the sessions, with plenty of time for questions from the audience, will be ideal for in depth discussion of the features being planned for the final version. The conference will be a timely opportunity to put your questions to the authors of the ITS.

The EBA’s presentations will be followed by sessions with implementation experts from Deloitte, IBM and other firms covering the strategic issues around investments in compliance under the new regime.

For more details and registration: http://xbrl.org.uk/conference/

So what are the new rules for COREP and FINREP?

From 1 January 2014, banks will need to report thousands of additional risk and capital data points – a huge increase in frequency, volume and complexity when compared to previous reporting requirements.

Clarity on the regulation is vital to ensure the successful implementation of COREP and FINREP reporting under CRD IV. Step in ‘Preparing for CRD IV Reporting’. As the conference title suggests, the event aims to provide extensive support to the financial community pending the implementation of the reporting framework.

In the afternoon of June 17, the conference has scheduled two separate talks on COREP and FINREP to address the key challenges institutions face in adhering to the complex requirements of the new reporting framework. Meri Rimmanen and Wolfgang Strohbach from the European Banking Authority will provide an authoritative business overview of COREP and FINREP reporting.

Full details and registration for the 17 June event can be found at http://conference.eurofiling.info

The EBA recently published several consultations on draft guidelines and technical standards on their website: http://www.eba.europa.eu/Publications/Consultation-Papers/Open-to-responses.aspx

Preparing for CRD IV reporting

The new CRD IV banking regulation being introduced to bring Europe into line with Basel III regulation is prompting growing debate amongst regulatory authorities and banks alike.  Many aspects remain unclear, so it’s timely that a conference providing deep insight into the new regulatory landscape is taking place on June 17th at the London Hilton on Park Lane.

‘Preparing for CRD IV reporting’ is aimed at those involved in both banking regulation and preparing for the new reporting regime under COREP and FINREP and the conference will raise awareness of the issues around the imminent introduction of CRD IV compliance within Europe.

Sharon Bowles MEP, Chair of the European Parliament’s Economic and Monetary Affairs Committee, and a keen proponent of improving banking regulation at the European level, will give the keynote address, and the morning plenary session will include other high profile speakers from the European Central Bank, the European Banking Federation, the Bank of Spain and the International Monetary Fund.

After lunch, the programme will split into separate track sessions catering for delegates whose main interest is either the business or the technical aspects of CRD IV reporting.  Contributions from the EBA and top consulting firms will be followed by panel discussions and a Q&A session to broaden the debate.

Full details and registration at http://conference.eurofiling.info