Featured Product

    BoE Calls for Vendor Input for Data Collection Transformation Program

    December 03, 2021

    The Bank of England (BoE) opened the Alternative Liquidity Facility, or ALF, for deposits from the participating UK-based Islamic banks for the first time. This non-interest-based deposit facility was launched in December 2020 and is designed to provide banks that cannot pay or receive interest with a similar ability to place funds at BoE as conventional banks. In this, the participant deposits are backed by a fund of high-quality Shari’ah compliant securities known as sukuk and, in this first instance, the fund has purchased sukuk issued by the Islamic Development Bank. Additionally, BoE published a joint transformation program that sets out a vision and approach to delivering improvements in data collection over the next decade. As part of this initiative, BoE is requesting input, until December 10, 2021, to the solution design and wishes to engage stakeholders with relevant knowledge and expertise in areas that relate to the Quarterly Derivatives Return and Commercial Real Estate reporting use cases. This request for input is part of the engagement process with third-party suppliers to the financial services industry.

    The joint transformation program is taking a use case approach to research, design, and test solutions to address the issues the regulators and industry face. The three use cases for 2021/22 are the Quarterly Derivatives Return (BoE return), Commercial Real Estate reporting (BoE return), and the COVID-19 impact survey focusing on the financial resilience elements (FCA return), though BoE is requesting input in areas that relate to the Quarterly Derivatives Return and Commercial Real Estate reporting use cases. BoE is reaching out to suppliers to support the design phase for the use cases to find potential solutions to the issues that BoE faces. Any potential solutions will need to address elements or all of the statements related to the following:

    • To meet the quarterly financial derivatives market reporting needs of the current and future anticipated international standards in the most consistent, effective, and efficient way
    • To communicate and embed Financial Derivatives return (Form DQ)-related reporting requirements in the most effective, consistent, and flexible way
    • To efficiently get the commercial real estate (CRE) data BoE needs to proactively monitor and intervene if necessary
    • To communicate and embed (CRE-related) reporting requirements in the most effective, consistent, and flexible way between BoE and firms including expectations, feedback, and other useful information for firms

    Potential solutions will also need to cover how they could deliver benefit in the short, medium, and longer term. BoE will be holding demo days where interested parties can describe the solution idea(s), the key hypotheses for change/benefits, key milestones on a theoretical implementation road-map, and key implementation risks. All submissions will be reviewed by the joint transformation program. By December 21, 2021, a response will be sent from the joint transformation program to the selected solution providers with time and date of the demo. Some vendors will be invited to attend one of the demo days to present their proposal to a small panel of representatives from the FCA, BoE, and reporting firms involved in the joint transformation program. BoE may also follow up separately with other vendors depending on the basis of the proposal. 

    BoE also published a summary of the meeting of the Reporting Transformation Committee, which will focus on overseeing the design of solutions for parts of the reporting process where BoE, the Financial Conduct Authority (FCA), and reporting firms interact directly. This will cover aspects of modernizing reporting instructions and creating a better integrated end-to-end reporting process. At the meeting Andy Beale of FCA presented the current progress of the project plan and highlighted that the project is on track. Form DQ discovery is ending and its alpha phase is beginning. Discovery work on the CRE and Financial Resilience Survey use cases is ongoing. Angus Moir of the BoE Transformation Program Lead, proposed postponing the Liquidity Metric Monitoring LMM use case due to limited resource in the delivery groups, as it would be better to focus the efforts of the group onto the use cases already in progress. The Committee approved the decision to delay the start of this use case. In addition, Andy Beale of FCA outlined the vendor engagement process. The team wants to be open and get the perspective of vendors who have a wide range of experience and may have more specific insight on current issues faced by reporting firms for regulatory data collections. As a next step, members are expected to send contact details of any relevant vendors to the secretariat.

     

    Related Links

    Keywords: Europe, UK, Banking, Securities, Liquidity Facility, ALF, Credit Risk, Data Collection, Form DQ, Derivatives, Reporting, Commercial Real Estate, Regtech, Data Transformation, Islamic Banking, FCA, BoE

    Featured Experts
    Related Articles
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    News

    APRA Licenses Two More Banks, Reduces Committed Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) granted license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.

    January 06, 2022 WebPage Regulatory News
    News

    EU Issues SII Corrigendum; EIOPA Assesses SII Reporting Exemptions

    EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).

    January 06, 2022 WebPage Regulatory News
    News

    EBA Opines on Impact of De-Risking and Associated AML/CFT Challenges

    The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.

    January 05, 2022 WebPage Regulatory News
    News

    French Financial Markets Authority Sets Out Priorities for 2022

    The French Financial Markets Authority (AMF) published its 2022 work priorities, along with the supervisory priorities for 2022.

    January 05, 2022 WebPage Regulatory News
    News

    US Agencies Issue Statement on Community Bank Leverage Ratio Framework

    The U.S. Department of the Treasury issued a determination on a request for an exemption, by RBC US Group Holdings LLC, from certain requirements of the rule implementing the qualified financial contracts (QFC) recordkeeping requirements under the Dodd-Frank Act.

    January 04, 2022 WebPage Regulatory News
    News

    FCA Informs About Changes to LIBOR Settings From End-2021

    The Financial Conduct Authority (FCA) announced that publication of 24 LIBOR settings has ended and that, going forward, the 6 most widely used sterling and Japanese yen settings will be published using a changed methodology.

    January 04, 2022 WebPage Regulatory News
    News

    PBC Sets Out Fintech Development Plan for 2022 to 2025

    The People’s Bank of China (PBC) formulated the recently issued Fintech Development Plan (2022 to 2025) under the Outline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives through the Year 2035.

    January 04, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7854