Newsletter - September 2018
December 2018
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What I'm Looking For (WILF) - Looking Back and Looking Forward

It has been 8 years since we first deployed WILF Reporting (WILFr) which was called BIRT in those days. WILFr was originally conceived as a solution to the reporting needs of Bankmaster customers who struggled to report against a complex, transaction based and non-SQL compliant core banking database. WILFr now extracts data from over 18 different core banking systems as well as numerous lending, CRM and accounting systems, providing banks and other financial institutions with a single data repository from which they can produce reports, extracts and feeds to other systems.

WILFr Overview

Although, originally used by UK institutions that were small in size, WILFr is now in use at banks of all sizes and located in many countries. In the last 4 years, Fairmort has built a number of standard reporting solutions for the UK such as Automatic Exchange of Information (AEOI), Financial Services Compensation Scheme (FSCS), Bank & Building Society Interest (BBSI), as well as the Prudential Regulation Authority (PRA) and the Financial Services Authority (FSA) reporting. European solutions are also catered for, such as Common Reporting (COREP) and the international Common Reporting Standard (CRS) tax reporting.

Over the last 12 months, our development focus has been on providing standard 'out-of-the-box' reports that cover the full requirements of the financial sector from profit and loss and balance sheet reporting to deposit, loan and customer service dashboards that provide a holistic view of an organisation's performance. Although delivered as standard reports, they can be customised to meet any differences in approach. Maintenance of new data sources and data fields has been made more straightforward for those staff administrating the system by moving its WILFr front-end application.


Looking Forward

We are now working on several solutions that provide banks with the means to phase out the use of spreadsheets for day-to-day data management and reporting, by moving these activities to the WILFr data repository. In some cases, this involves additional data feeds being built to replace manual spreadsheet-based processes, in others it involves one-off data migrations and the maintenance of spreadsheet data in WILFr with the appropriate audit trails and access controls. We see this trend continuing and gathering pace as financial institutions seek to put in place a more robust reporting processes and remove some of the inherent risks in the current manual processing (human error, key-man risk etc). While we provide our own regulatory reporting suite which is particularly attractive to new entrants or those seeking to replace their existing systems, we are increasingly being asked to provide automated feeds to third party regulatory reporting systems due to our experience in the underlying core systems and our technical expertise to provide data in the required formats.

Our pragmatic approach of providing solutions and a platform for in-house reporting using tools such as SQL Server Reporting Services (SSRS), PowerBI etc, and the willingness to build standard extracts for competing regulatory providers delivers financial institutions with a solid platform to manage their data and reporting requirements.

Fairmort looks forward to working with its customers, suppliers and partners in the New Year and would like to wish all a very Merry Christmas and best wishes for the year ahead.


WILFr Features

To ensure you are kept fully informed of all the WILFr features available to you view our .

WilfR Features

Regulatory Updates

To ensure our software is compliant with the latest regulations we proactively research regulatory changes monthly. These changes may have an impact on your business.


Common Reporting (COREP)

The European Banking Authority (EBA) has release plans for major updates to taxonomy in v2.9. Release 2.9 will be rolled out as 4 packages over 2 years.

COREP
Timeline

  • Package 2.9.1
    • Changes to existing resolution reporting requirements (adjustments and additional templates)
  • Package 2.9.2
    • Changes to COREP to align with new securitisation framework
    • Changes to FINREP concerning non-performing and forborne exposures reporting, P&L and IFRS16
    • Integration of remuneration benchmarking into DPM and taxonomy
  • Package 2.9.3
    • Changes to LCR to align with the LCR amending Act
  • Package 2.9.4
    • Changes to reporting requirements as specified in the ITS on supervisory benchmarking of internal models
    • Review of Guidelines on Funding Plans


The following table gives details of the release schedule:

COREP

Full details can be found on the EBA's website, found .


PRA110

The PRA has published a helpful Q&A factsheet in the run-up to the introduction of PRA110, which will be effective from 1st July 2019. The factsheet can be found .


PRA Activities

Date Topic Ref Report Comment Link to webpage
15th November 2018 PRA Securitisation: The new EU framework and Significant Risk Transfer PS 29/18 The date of application for the new securitisation legislative framework is Tuesday 1 January 2019. SS10/18 'Securitisation: General requirements and capital framework' and amendments to SS31/15 are effective from Tuesday 1 January 2019. The updated policies amending SS9/13 apply immediately after the publication of this PS to all PRA authorised CRD IV firms.
14th November 2018 PRA Policy Statement 28/18 'UK leverage ratio: Applying the framework to systemic ring-fenced bodies and reflecting the systemic risk buffer' which includes updated policy, and materials. Systemic risk buffer institutions FSA083 We published Policy Statement 28/18 'UK leverage ratio: Applying the framework to systemic ring-fenced bodies and reflecting the systemic risk buffer' which includes updated policy, and materials. For regulatory reporting this includes updated versions of the FSA083 data item and instructions that will take effect from 1 January 2019.
9th November 2018 PRA Publishes version 2 of the PRA110 Q&As Q&A PRA110 PRA published version 2 of the PRA110 Q&As which has been updated to include responses on questions related to: technical implementation; the LCR weights; and memorandum items. This supersedes the version previously published on 28 September 2018. The Q&As are in response to a number of additional questions from firms regarding the template and reporting instructions. For more information see the Interim reporting of PRA110 section.
31st October 2018 PRA Publishes Ring-fencing: Summary of regulatory reporting requirements pack. Ring-fencing We published the 'Ring-fencing: Summary of regulatory reporting requirements' pack which summarises the new regulatory reporting, and reporting system requirements in relation to ring-fencing. The pack is aimed at UK banking groups in scope of structural reform requirements that will be required to submit ring-fencing regulatory returns from 1 January 2019. See the 31 October update on the Structural reform webpage.
30th October 2018 EBA Draft consultation on data point model 2.9 Data point model The EBA published for consultation its draft data point model 2.9 on 30 October 2018. This concerns data requirements for supervisory reporting changes arising from the EBA's reporting framework 2.9 revision. This follows on from its related August 2018 consultation on changes to COREP and FINREP reporting. The consultation closes on 7 December 2018.
25th October 2018 BOE Consultation papers on Brexit - no deal Data point model The BoE provided further details on its plans to have its regulatory framework in place should the UK leave the EU in March 2019 without a deal. The BoE/PRA published a set of consultation papers on 25 October 2018 setting out its proposed approach to on-shoring EU regulation and changes to existing BoE rules as a result of Brexit.
15th October 2018 FCA Publishes feedback on Digital Regulatory Reporting FS18/2 The FCA published feedback statement FS18/2: Digital Regulatory Reporting (DRR), which summarises feedback on a proof of concept that would unlock smarter regulatory reporting, on 17 October 2018. The FCA received a positive response from the financial services industry. It's currently running a pilot to assess the technologies used to develop a DRR prototype, and intends to publish the findings in Q1 2019.
12th October 2018 PRA Consultation paper Liquidity reporting CP 22/18 FSA047
FSA048
PRA publishes Consultation Paper (CP) 22/18 'Liquidity reporting: FSA047 and FSA048'. This CP is relevant to banks, building societies, and PRA-designated investment firms. This consultation closes on Monday 12 November 2018.
11th October 2018 EC New anti money laundering directive. The EC adopted a new anti money laundering directive on 11 October 2018. The directive will impose minimum sanctions for criminal offences relating to money laundering, enable legal entities to be held liable for certain money laundering activities and remove barriers to cross-border judicial and police cooperation. The EC has given Member States up to 24 months to transpose the directive into national law.
10th October 2018 FCA Consultation paper Brexit & BTS Brexit: proposed changes to the Handbook and Binding Technical Standards - first consultation
1st October 2018 PRA Updated Pillar 2 reporting comes into effect Pillar 2 PRA111 FSA071
to FSA082
Brexit: proposed changes to the Handbook and Binding Technical Standards - first consultation
28th September 2018 PRA Publishes Q&A on template and reporting instructions Q&A PRA110 Following the publication of the final PRA110 template and associated reporting instructions in Policy Statement (PS) 2/18 'Pillar 2 liquidity', we have received a number of additional questions from firms regarding the template and reporting instructions. We have decided to publish answers to these questions ('Q&As') periodically, where questions received highlight a need to clarify the reporting instructions or rules. This document is version 1 of the PRA110 Q&As and covers responses on questions related to monetisation rows. In addition, having considered feedback from firms, we have reviewed the currency reporting basis for the interim reporting period: firms should only submit on an all-currency basis and for US Dollars (USD), where USD is a material currency.
19th September 2018 EBA Report on guidelines for IRRBB (Banking Book) published IRRBB The European Banking Authority (EBA) published its final report on Guidelines on the management of interest rate risk arising from non-trading ('banking') book activities (IRRBB) - one of the Pillar 2 risks specified in Capital Requirements Directive IV (CRD IV). The Guidelines will apply to firms from Sunday 30 June 2019. If firms have concerns about their ability to comply by the 2019 deadline, they should get in touch with their usual supervisory contacts. The Guidelines do not affect PRA published policy and reporting requirements on IRRBB, as set out in PRA Rules, SS, and Statements of Policy, which continue to apply. The Guidelines form part of a wider set of updated guidance by the EBA on the Pillar 2 framework, as published in the EBA's final guidance to strengthen the Pillar 2 framework.
12th September 2018 PRA PRA published Consultation Paper (CP) 19/18 'Regulatory Reporting: EBA Taxonomy 2.9'. CP 19/18 We published Consultation Paper (CP) 19/18 'Regulatory Reporting: EBA Taxonomy 2.9'. This CP sets out proposals to update certain PRA reporting requirements to reflect relevant proposals made by the European Banking Authority (EBA) in its open consultations on changes to the Implementing Technical Standards on Supervisory Reporting. This consultation closes on Wednesday 12 December 2018. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP19_18@bankofengland.co.uk.
31st August 2018 PRA Updated: RA Supervisory Statement (SS)19/13 SS 19/18 PRA Supervisory Statement (SS)19/13 'Resolution Planning' sets out the resolution planning information that firms are expected to provide to the PRA in accordance with the PRA's Resolution Pack rule in the PRA Rulebook.
31st August 2018 PRA To assist firms with their submission of PRA110, PRA published a taxonomy release note alongside v3.1.1 of the XBRL taxonomy, data point model (DPM) and taxonomy validations PRA 110 Transition to v2.7 and v2.8 of EBA FINREP taxonomy In order to assist firms' planning for their upcoming regulatory reporting requirements, we have produced a graphic explaining when firms should transition to using v2.7 and v2.8 of the EBA's reporting taxonomy for FINREP (see 'EBA regulatory reporting: FINREP reporting taxonomy implications' below).
31st August 2018 PRA Resolution planning - updated following EBA's final draft ITS on BRRD MREL The ITS set minimum data requirements for firms on resolution planning and will require firms to report using new templates from 31 May 2019. But the RTS allow resolution authorities to set alternative requirements for firms that qualify for simplified obligations. The BoE expects all UK banks and investment firms with resolution strategies not involving bail-in or partial transfer to have simplified obligations for resolution planning. In light of this, the PRA indicates that firms subject to simplified obligations should continue to follow its expectations set out in SS19/13 for Phase 1 resolution planning data submissions. And they need not make any additional ITS-related submissions unless the BoE informs them otherwise.
28th August 2018 EBA Updating COREP and FINREP reporting Consultation The EBA published three consultationpapers: Draft ITS amending ITS (EU) 2016/322 with regard to LCR for liquidity reporting, Draft ITS amending ITS (EU) 680/2014 with regard to COREP securitisations and Draft ITS amending ITS (EU) 680/2014 with regard to FINREP on 28 August 2018. This is part of the EBA's preparations for the next supervisory reporting framework release - version 2.9. The EBA is structuring reporting framework 2.9 with different modules which it plans to publish and apply from different dates.

Logical Object Reporting

The banking community is facing the challenge of an increasing pace of legislative change and the complexity it brings with it, at the same time as facing very dynamic market conditions driven by innovative technology.


We have therefore focussed our expertise in data management to create a versatile and cost-effective long-term solution to meet these challenges, called 'Logical Object Reporting'.

Timeline

View our to see how we can transform your reporting requirements.