Featured Product

    EC Issues Strategy to Modernize Reporting of Data in Financial Sector

    December 15, 2021

    The European Commission (EC) presented a new strategy to improve and modernize financial supervisory reporting in the European Union. The strategy builds on the conclusions of the comprehensive fitness check of EU supervisory reporting requirements in financial sector legislation. In line with the strategy, the next key implementation milestones will be the assessments by ESAs to further integrate reporting and improve consistency and data standardization within the respective sectors, the establishment of sectoral data dictionaries, the review of obstacles to data-sharing, and the formalization of the governance arrangements.

    The aim the EC strategy is to modernize supervisory reporting in the European Union and to put in place a system that delivers accurate, consistent, and timely data to supervisory authorities at the Union and national levels, while minimizing the aggregate reporting burden for all relevant parties. This strategy will contribute directly to the objectives of the European Data Strategy and the Digital Finance package to promote digital innovation in Europe and to further the objectives of a Capital Markets Union. The fitness check of the supervisory reporting requirements concluded that there are inefficiencies and gaps in the way these requirements are defined in the European Union law and data are collected. This can have an effect on the ability of authorities to perform their supervisory functions. It also generates unnecessary costs for companies and does not allow full use to be made of modern digital technologies. However, digital technologies, including the supervisory technologies or suptech, have the potential to significantly reduce the reporting burden for companies and allow supervisors to gain insights from the reported data more effectively and efficiently. Thus, EC is proposing the Supervisory Data Strategy to address the shortcomings identified in the fitness check and to enable supervisory authorities to seize the opportunities of data-driven supervision. This strategy has the following four main building blocks:

    • Ensuring consistent and standardized data that relies on clear and common terminology as well as on common standards, formats, and rules.
    • Facilitating the sharing and re-use of reported data among supervisory authorities by removing undue legal and technological obstacles to avoid duplicative data requests.
    • Improving the design of reporting requirements by developing guidelines based on best practices in applying better regulation principles in supervisory reporting.
    • Putting in place joint governance arrangements to improve coordination and foster greater cooperation between different supervisory authorities (such as the European Supervisory Authorities, the European Central Bank, the Single Resolution Board, and the European Systemic Risk Board) and other relevant stakeholders, allowing them to share their expertise and to exchange information.

    A common data dictionary is also part of the discussion, among other factors. The data dictionary will be a repository containing a description of the content and format of all data collected under various reporting frameworks in a structured, comprehensive, consistent and unambiguous manner, using terms anchored in legislation to establish a clear link between collected data items and the relevant legislative requirements. Another aspect of this strategy relates to the development of the supervisory data space, which aims to ensure that the data is reported only once and then shared and reused as needed by the different authorities overseeing the financial system in the European Union. EC has already proposed targeted amendments in certain legislation (for example, the Review of the Alternative Investment Fund Managers Directive (AIFMD) and the October 2021 Banking Package) to facilitate efficient sharing and reuse of data by authorities. Working with the European Supervisory Authorities (ESAs) and other authorities, EC will, by 2023, review the relevant legislation to identify other legal obstacles to data-sharing and stands ready to address them, where necessary. 

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, PMI, Reporting, Suptech, Regtech, Common Data Dictionary, Basel, Supervisory Data Space, EC, EBA, ESAs

    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