RegTech Search

JWG analysis. While the significant reforms of MiFID II, the BRRD, the SRM and the DGS stole the limelight on ‘Super Tuesday’, other significant legislation also made its way through…

…Parliament on ‘Super Tuesday’ will undoubtedly provide further headaches for the financial services sector. Firms have just a couple of months before EMSA, EBA and EIOPA consultations begin and the…

JWG analysis Last week, long after the news of Super Tuesday which reshaped the EU regulatory landscape, Europe made MiFID II, MAR, CSMAD, DGSD and the BRRD law of the…

…data quality”. To address these shortfalls, ESMA recently established a single Supervision Department in order to further develop its supervision of CRAs and TRs. In particular, through the Supervision Department,…

…ESMA’s focus will shift increasingly from rulemaking to implementation. As such, supervisory convergence in the implementation, supervision and enforcement of common EU rules will be a core focus of ESMA’s…

…lockdown, much FCA supervision work was routinely conducted through telephone contact and desk-based reviews. An FCA spokeswoman did not say when routine in-person supervisory visits would resume. Most financial services…

…in London. Proactive FCA assessments Some 60 of these 600 new FCA supervisory cases stem from proactive assessments, one of the FCA’s supervisory tools, and about 225 of the 600…

…well as making senior appointments. “Data has been clearly identified as a major challenge in the AMF’s Supervision 2022 strategic plan. The orderly development of data use in the AMF’s…

…specific supervisory tasks related to the financial stability of all euro area banks”, though it says national regulators will “continue to play an important role in day-to-day supervision” as well…

…“contributor”, “supervised contributor” and “supervised entities”. The latter would include banks, investment firms, insurance and reinsurance undertakings, UCITS, AIFMs, CCPs, trade repositories and a benchmark administrator (Article 3 IBR). Annex…

The European Banking Authority (EBA) has finally published its final draft Implementing Technical Standards (ITS) (here) on supervisory reporting for CRD IV. Long awaited, the technical standards set out the…

…international level is the BCBS consultation on ‘Supervisory guidelines for identifying and dealing with weak banks’. In this paper, the BCBS is consulting on new guidelines that will supersede the…

…approach towards financial supervision and has often superseded its own G20 commitments towards regulatory change – let’s not forget that it was the UK, not Brussels, that introduced the Senior…

…way across the EU, is of critical importance. In addition to regulatory and supervisory convergence, a high level of investor protection is key to reduce barriers and fragmentation between national…

…financial services legislation where public data disclosure is required. European supervisory authorities intend to develop a strategy on supervisory data in 2021, Ostrovskis said as he noted the EC PoC…

…supervision of OTC derivatives markets and EU CCPs. In addition, the Global Legal Entity Identifier Foundation (GLEIF) launched, on Tuesday, a data quality management programme in order to monitor, assess…

…including the organisation and general approach of supervision of best execution, whether policies comply with MiFID, a review of appropriate information provided to clients, supervision of firms’ ability to demonstrate…

…podcast platforms, including: Objective To stimulate holistic debate over the digital approach to FS sector supervision Outcome Contextualise strategic issues and inform strategies for effective development of digital policies and…

JWG’s RegTech Capital Markets Conference has made it into Business Insider’s list of the world’s best RegTech conferences to attend in 2017. The 300-person event in Central London on 28…

…experience among supervisory authorities and provides regulatory and supervisory inputs for taking measures to combat money laundering”. For existing coverage, have a read of our AML articles. Basel III/CRD IV-CRR…

…governance. National supervisors, the Basel Committee said, would investigate the root causes of non-compliance and use ‘supervisory tools and appropriate discretionary measures’ to get the banks in shape by 2016….

Financial services are digitizing fast but there is much more public and private sectors can do to deliver reporting controls which fulfil supervisory mandates in a digital age. We were…

 …

…best practice in promoting a common supervisory culture and the fostering of supervisory convergence, with a specified focus on the drafting and oversight of regulatory reporting obligations. Lack of a…

Many UK firms are far from fully compliant with the Market Abuse Regulation ( MAR) applied in July 2016, requiring the Financial Conduct Authority (FCA) to continue its supervisory visits…

Digital regulatory reporting – tipping point 2021 By PJ Di Giammarino, CEO JWG Group New JWG research has found supervisors to be focused on creating new standards for interpreting complex…

…simple enough, the Volcker Rule itself is complex as a result of the above exceptions. A complicated rule makes for varying interpretations and, therefore, more burdensome enforcement, forcing supervisory agencies…

…Supervisory Authorities (ESAs) have introduced several consultation papers outlining draft regulatory technical standards (RTS) and implementing technical standards (ITS). This follows on from the ESAs discussion paper on the criteria…

The Federal Reserve Board published a final enhanced supervision rule, known as Regulation YY, on 18 February, 2014. This regulation implements certain provisions of Section 165 and 166 of the…

…Randell, FCA chair, told the Treasury Select Committee on March 1. Better technology, data and information management were needed to help the FCA avoid supervisory failures in future by allowing…

…should be comprehensive of “Supervisory reports that are submitted to financial supervisory or regulatory authorities. This includes, for instance, FINREP/COREP reporting templates, submissions to EBA/SSM stress test exercises and Pillar…

…abuse. Tuesday’s ECON session at the European Parliament was dedicated to discussing the GameStop market event and its impact on EU markets. Steven Maijoor, ESMA’s outgoing chair, told the committee…

…we like to think we play it pretty well. The EU’s agenda in context Following the ‘Super Tuesday’ reforms passed by the European Parliament before they went to the polls,…

…pages and 60 questions are devoted to risk regulation, with the EBA’s consultation paper on common procedures and methodologies for the supervisory review and evaluation process, which primarily deals with…

…take place within the fourth quarter of 2017 Strengthening the effectiveness of supervision to accelerate market integration: The EC states within the mid-term review that it will strengthen ESMA’s powers…

Andrew Bailey, the freshly anointed head of the new Prudential Regulation Authority (PRA), gave the strongest indication yet of the approach that would be taken to regulating and supervising systemic…

…a rather big wheel of FATF Recommendations, requires countries to implement measures to ensure that VASPs are subject to effective regulation and supervision or monitoring for AML/CFT purposes. As shown…

…This was followed up with a 2010 report by the Senior Supervisors Group (SSG), highlighting poor IT infrastructure practices which were having a negative impact on risk data. During the…

…IT providers so that they can supervise them directly. The proposals which will be debated in 2021 also propose to give the supervisors the ability to issue GDPR-like fines of…

…aggregated supervisory data, and analytics with the market. The strategy includes pursuit of thought leadership and collaboration on data standards and reporting innovation with EU institutions (e.g., ECB, ACER) on…

…supervisory measures is only set to intensify when the EU’s Benchmark Regulation comes into force and the implementing measures are released. Why are regulatory measures necessary? The current idea for…

…Adamson gave a hint as to how the supervision of firms will operate in practice when he said: ‘[f]rom a supervision perspective, we are looking more closely at the business…

…undue delay”. MEPs have also inserted a duty for supervisory authorities to maintain a public register of the types of breach notified (Article 31.4a). Questions remain as to (1) what…

…Financial Stability, Financial Services and Capital Markets Union, European Commission (DG FISMA). “The overall objective here is of course to modernise and simplify [European Supervisory Authorities] ESAs’ reporting and ensure…

The global regulatory community has put its support behind digital regulatory reporting (DRR) initiatives acknowledging supervisors require the ability to collect better quality data more efficiently. The Bank of International…

…aware of the rolling regulatory tsunami that has been gathering pace to do just this, the European Commission also proposed a Single Supervisory Mechanism (SSM) for banks, led by the…

A new approach to global regulatory data observation is fundamental to the fulfilment of Supervisory mandates in a digital age. The sector is digitizing fast but there is much more…

…The European Commission Staff Working Document Fitness Check of EU Supervisory Reporting Requirements published in November 2019 said: “Centralised structures that will act as both a common database of reported…

…supervisory bodies, new regulations and increasingly intrusive oversight; A fragmented ecosystem and lack of standards to bring together regulators, financial firms and their service providers. But what about how firms…

…they meet boards’ objectives and supervisors’ compliance criteria. JWG’s exclusive research lays out the challenges for our 29 June virtual seminar which will use our RegRadar to get race advice…

…less burdensome to all market participants. On this point, it notes how many respondents to the Call of Evidence highlighted that diverging and inconsistent supervisory approaches contribute to unnecessary regulatory…

…2010, the UK’s Technology Strategy Board funded a paper on achieving supervisory control of systemic risk. It’s an interesting read, though we doubt many have read it. One of the…

…and regulators. But can technological tools in the hands of regulators head this off at the pass? A reasoned, transitional approach to compliance, along with powerful supervisory technology (or suptech)…

…complacent; the reviews of markets and order flows from H1 2020 have not even got into their strides, let alone reached any conclusions. Regulators’ supervisory agendas probably are significantly more…

…game-changing regulatory intervention like direct supervision of Cloud Service Providers (CSPs) is requried. Calls for clarity – answered? The first batch of DORA consultations elicited comprehensive responses from industry stakeholders….

…be any common guidance from the supervisory community. United States (US): All fines Since the first Securities and Exchange Commission (SEC) cryptocurrency-related enforcement action in 2013 through the end of…

…likely to mean for regulators, regulated and their customers. The group discusses past choices and explores the implications of digitizing the future regulatory framework including splitting retail supervision, regulatory reporting…

…The regulators and regulated have all made progress and the sector is building momentum in Q4. Register Here Regulatory demands picking up pace Last quarter it became clear that supervisors…

…international markets regulation, including MiFID II, the Alternative Investments Fund Managers Directive (AIFMD), Packaged Retail Investment Products (PRIPs) reforms, and IT upgrades. The ESMA Board of Supervisors approved a larger…

…and so the threshold for Bank of England supervision is met. For entities authorised by the Financial Conduct Authority (FCA) and recognised under the Banking Act, the Bank of England…

…be provided through ESAP using interactive dashboards. It would gradually extend the number of datasets available. Data-driven supervision It intends to promote data-driven supervision by joint developments and use of…

…supervision and intervention. Misconduct, according to some of these essays, frequently occurs in institutions where there is an environment that nurtures such behaviours, either because they are ignored or encouraged…

…over time, said Lyndon Nelson, deputy chief executive and executive director, regulatory operations and supervisory risk specialists at the Prudential Regulation Authority (PRA), in a recent speech. “Suddenly the stifling…

…time … In May, JWG responded to the European Commission’s consultation on the operations of the European Supervisory Authorities with output from our first Reporting and Reference Data (RRDS) working…

…carried out. Second, more robust methodologies will be introduced with the intention of boosting transparency of the creation process. Third, stricter supervision will be required of some of the benchmarks,…

…too easy to figure out which banks were under scrutiny.   “Dear CEO” letter Sarah Breeden, executive director, UK deposit takers supervision, and David Bailey, executive director, international banks supervision,…

Following the announcement of a landmark deal on international cooperation over tax avoidance last week, Tuesday saw the signing of a transatlantic pact on data transfer. Even when the EU…

…supervisory machine, so they lost the support of dedicated technology specialists, and the scale box proposals that both the Chancellor and Nikhil Rathi mentioned yesterday, obviously go a very long…

…regulatory regime where supervisors are keenly watching for failings in this space. To solve this problem would surely mean fixing the foundational KYC issues in concert with establishing a new…

…using semantics to align real-world and supervisory information needs via industry-standard models (e.g., CDM). The Digital Reporting Task force As we wrote when we launched the task force in July,…

The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper covering challenges and 2022 priorities…

…distract firms and their supervisors from controlling new risks and leads to the development of a fragmented control infrastructure that incurs the risk of Garbage In, Gospel Out’ (GIGO) –…

Conduct risk is becoming something of a buzz word for regulators this year. In the UK, the FCA took over supervision of consumer protection from the FSA and published its…

…and reports which help to inform the supervisory and assessment measures of the policy. The Commission’s amendments seek to conclude this operation, whilst maintaining consideration for, and mitigating against, “undue…

…will have implications for any banks under the supervision of these bodies, and particularly for those functions which affect the bank’s interaction with the general public. Therefore this development will…

The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper by December 2021 covering challenges and 2022…

…and transaction scenarios – differentiating between jurisdictions, products and regimes. With so much of today’s information being computer generated, the language and method of data collection used by European Supervisory…

…Thus far, ESMA has developed a framework to track, analyse and monitor innovation and its impact on markets, outlined in its recently published 2018 Supervisory Convergence Work Programme. This document…

…host country. This may result in a lack of accountability due to the frameworks not being in place for consolidated supervision, and is a stark reminder of the need for…

…regulatory experts from some of the world’s largest supervisory bodies and investment firms will share their views. Jo Hannaford of Goldman Sachs, who returns by popular demand, Beju Shah from…

…supervise: conduct & culture is a “door to everywhere” inside an organisation, and what the FCA considers as important for conduct & culture at any individual firm is up to…

…market-wide data quality metrics to show firms where improvement was required. It publishes its findings from supervisory work in Market Watch to improve data quality to provide firms with information…

…Identifier (LEI) and is based on the international standard ISO 17442. The establishment of GLEIS is being supervised by the FSB, which validated a framework which consists of local operating…

…the three European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA. Alongside the guidelines, ESMA put out a press release stating that “in light of legal concerns, the ESAs decided…

…highlighted by the financial crisis of 2008, there has been a significant push for an increase in the regulation and supervision of the financial sector. Within the EU, increasing consumer…

…ability to not put any issue under a heading. The FCA has very broad discretion to determine what is in its supervisory agenda and what it not. Supervision and enforcement…

…supervised by their home authorities and not separately capitalised. In order to assess whether this situation poses a significant risk to the UK financial system, the PRA will be asking…

JWG analysis. This month the Japanese Financial Services Agency published their latest FAQ on the Financial Instruments and Exchange Act (FIEA). The current version of FIEA was approved and enacted…

…JWG analysts have been hard at work throughout the pandemic mapping out the next generation of regulatory reforms’ impact on firms, their supervisors and suppliers. In addition, we’ve been at…

…24 July 2014. It is set to become effective on or after 1 January 2018, replacing IAS 39 and superseding all previous versions. The accounting standard “includes a logical model…

…has numerous initiatives aimed at modernising and integrating data-reporting regimes, which should ultimately foster digital regulatory reporting. The European Commission’s supervisory data strategy will streamline and modernise reporting for EU…

…resource. The GLEIF, next up on the hierarchy, are permitted under these master agreements to conduct audits and investigations on the LOUs as part of their supervisory responsibilities. The GLEIF…

…Instead of the current obligation of all companies to notify all data protection activities to data protection supervisors – a requirement that has led to unnecessary paperwork and costs businesses…

…conduct of business supervision. At the heart of this is an emerging concept – smart regulation – which moves the focus away from a tick-box approach to rule setting and…

…on specific s 166 findings and wants all firms to review and remediate reporting governance, controls and data. It will consider the full range of supervisory and enforcement actions for…

…The FCA 2.0 would remove the bureau’s authority to police unfair and deceptive or abusive acts and practices, as well as strip the agency of its supervisory and examination authority….

…market transparency and balance sheet management have been subject to prescriptive obligations and reporting to supervisors. Bloated rule books, Q&As and standards now address the fundamental question of ‘Who, trades,…

…as: “Is the development of technical standards and interoperability for FinTech in the EU sufficiently addressed as part of the European System of Financial Supervision? Is the current level of…

The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper by December 2021 covering challenges and 2022…

…for the coming year. Frequently occurring guesses include a move towards supervision and implementation after the storm of regulatory releases last year, a switch in spending from capital to IT…