Featured Product

    BoE Issues Update on Data Transformation Program for Financial Sector

    December 08, 2021

    The Bank of England (BoE) issued a communication to firms to provide an update on the progress of the joint data transformation program—which is being led by BoE, the Financial Conduct Authority, and the industry—for the financial sector in UK. This communication provides an update on the progress of the program since the launch, describing what has been achieved and the proposed activities for early 2022. It also provides an update on the expected resource needs for transforming data collection, for financial years 2022/2023 and engagement with stakeholders for input to solution designs.

    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 (DQ return), the Commercial Real Estate reporting (CRE return), and the COVID-19 impact survey focusing on the financial resilience elements (FRS return). The table below provides a status report of the key activities that have been undertaken and are still to be delivered. 

     

    Use case

    Discovery activities

    Analysis week and priority problem statements

    Designathon (two-day workshop)

    Alpha prototypes finalized

    Investment case and roadmap

    DQ

    Firm and BoE interviews. Research

    Early October – done

    Early November – done

    Mid-December

    Late January

    CRE

    Firm and BoE interviews. Research

    Early November – done

    Late November – done

    Early February

    Early March

    FRS

    Firm and FCA interviews. Data analysis. Firm survey

    Mid November –done

    Early December – done

    Early February

    Early March

     

    As per the communication, the Joint Transformation Program has resource commitment from participants for the "discovery and design" stage of the first use cases—ending March 2022. The leaders expect to require industry resource to progress the work beyond March 2022 and hope that as many of the current program participants as possible can stay on from March 2022 to July 2022. From July 2022 to June 2023, the aim is to move to the "delivery" stage of the phase one use cases. The program expects to ask for help from firms in testing the external-facing solutions and gathering feedback as solutions are developed. The regulators will be looking to form a group of industry users to do this and expect that the group will consist of individuals that actively use those platforms; these individuals will need to contribute 2 days a month of their time for a 12-month period from July 2022 to July 2023. Below are the planned activities for early 2022:

    • In the first quarter of 2022, the participants will have moved from the "discovery" stage to "design" stage for all phase one use cases. In the "design" phase, the program explores and designs solutions to address the challenges identified in the discovery phase. It will be decided which solutions regulators and industry should take forward for further investment and implementation. Regulators will also, in consultation with industry, select and confirm the use cases for the next phase.
    • The approach to scaling based on the outcomes of phase one will be a key focus for next year. The Data Standards Committee plans to commission a review on data standards, as the critical reform needed to transform data collection is the definition and adoption of common data standards.
    • More frequent communication will take place, sharing timely insights and outputs from the program. Different channels to engage with the stakeholders will also be explored.

    The regulators had, on December 01, 2021, announced that they are seeking input from vendors and others, to help design potential solutions to challenges they have identified for the use cases. The submissions were requested, by December 10, 2021, for the Quarterly Derivatives return (DQ) and Commercial Real Estate (CRE) reporting use cases. To ensure the continuation of work with industry in an open, collaborative, and transparent manner, the regulators will be providing regular program updates to not only share the outputs, but to also provide opportunities to be involved with this work and to give feedback. Next year, the provision of program updates is anticipated at least every two months.

     

    Related Links

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

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8286