FCA Issues Letter to CEOs on Quality of Prudential Regulatory Returns
FCA published a letter requesting the CEOs of IFPRU investment firms and BIPRU firms to review their regulatory reporting practices. The CEOs are requested to ensure that the regulatory reporting practices are fit for purpose, comply with the relevant reporting provisions, and produce materially accurate data. FCA plans to review a sample of firms’ returns, as of October 01, 2018. If it finds that firms continue to submit materially inaccurate, incomplete, and/or poor quality data, it will then consider the next steps to improve the standards of returns.
FCA uses regulatory returns to assess prudential risk and to understand business models, financial positions, and risk exposures of firms, in addition to identifying trends within and across sectors. In its letter, FCA has identified the most common issues observed with returns, which are:
- Failure to complete the underlying templates within the common reporting framework (COREP) submissions, due to inadequate understanding of the prudential rules
- Failure to submit certain returns, such as the financial reporting return
- Incorrectly calculated total sum of risk exposures across various risk categories (for example, market and credit risks), leading to an inaccurate figure for capital requirements of firms
- Inconsistency in COREP returns—EBA validation rules dictate that certain data points submitted across different templates within COREP should show identical values or equal the sum of a number of other values
- Reporting using incorrect units
- Not reporting cumulatively (on a year-to-date basis) on the FSA002 income statement
Related Link: FCA Letter (PDF)
Keywords: Europe, UK, Securities, Reporting, COREP, Prudential Returns, FCA
Previous Article
FCA Seeks Views on Technology to Achieve Better Regulatory ReportingRelated Articles
|
News
EC Amends Regulation Supplementing Solvency II DirectiveEC published the Delegated Regulation (EU) 2019/981 that amends the Regulation (EU) 2015/35, which supplements Solvency II Directive (2009/138/EC) on the taking-up and pursuit of the business of insurance and reinsurance.
June 18, 2019
WebPage
Regulatory News
|
|
News
IOSCO Report Examines Application of International Cyber StandardsIOSCO published a final report that examines the application of the three internationally recognized cyber standards and frameworks by IOSCO member jurisdictions.
June 18, 2019
WebPage
Regulatory News
|
|
News
PRA Launches 2019 Stress Test Exercise for Life and General InsurersPRA has launched the biennial insurance stress test and is asking the largest regulated life and general insurers to provide information about the impact of a range of stress tests on their business.
June 18, 2019
WebPage
Regulatory News
|
|
News
PRA Finalizes Reporting Amendments to Pillar 2 Liquidity FrameworkPRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.
June 17, 2019
WebPage
Regulatory News
|
|
News
FSB Assesses Implementation of Compensation Standards and PrinciplesFSB published the sixth progress report on the implementation of its principles and standards for sound compensation practices in financial institutions.
June 17, 2019
WebPage
Regulatory News
|
|
News
IMF Publishes Reports on 2019 Article IV Consultation with IrelandIMF published its staff report and selected issues report under the 2019 Article IV consultation with Ireland.
June 17, 2019
WebPage
Regulatory News
|
|
News
EBA Updates Data on Deposit Guarantee Schemes in EUEBA published the 2018 data on two key concepts in the Deposit Guarantee Schemes Directive (DGSD)—namely, available financial means and covered deposits.
June 17, 2019
WebPage
Regulatory News
|
|
News
SNB Updates Form for Reporting Solvency Risk of CounterpartiesSNB published the survey (Form Release 5.01) and related documentation for reporting solvency risk of counterparties in the interbank sector (ARIS).
June 17, 2019
WebPage
Regulatory News
|
|
News
ISDA Studies Variation in Global Implementation of Margin RequirementsISDA published a paper that highlights the main areas of difference in the implementation of margin requirements for non-cleared derivatives across jurisdictions and makes recommendations on how to resolve these variations.
June 17, 2019
WebPage
Regulatory News
|
|
News
US Agencies Finalize Rule to Streamline Reporting for Small BanksUS Agencies (FDIC, FED, and OCC) adopted a final rule to streamline the regulatory reporting requirements for small institutions.
June 17, 2019
WebPage
Regulatory News
|
