EC Issues Evaluation Roadmap for EU Reporting Requirements
EC issued an evaluation roadmap for a fitness check of the EU reporting requirements in the financial sector. EC is conducting this fitness check to analyze the shortfalls associated with supervisory reporting. The planned start date for this is the fourth quarter of 2017 while the planned end date is the fourth quarter of 2018 (representing the indicative planning period).
The assessment looks at whether the reporting requirements are meeting their objectives (effectiveness, relevance, EU added value), whether the different reporting frameworks are consistent with one another (coherence), and whether the cost and burden of the reporting obligations is reasonable and proportionate (efficiency). The results of the assessment will identify potential areas where compliance cost and burden stemming from the reporting obligations could be reduced (for example by streamlining and simplifying them) without compromising the financial stability, market integrity, and consumer protection objectives of these obligations. The assessment will look at several pieces of legislation in conjunction. However, due to the significant number of legislative acts and corresponding reporting requirements involved, the present assessment will focus on the legislative acts that contain requirements to report, for supervisory purposes, data in a structured format. The assessment is limited to primary (Level 1) legislation, with a more in-depth look at certain products (for example, derivatives) where a more granular approach to reporting is used.
The assessment is being conducted in parallel with the Financial Data Standardization (FDS) project, which aims to map all existing supervisory reporting requirements down to the data element level with the aim of identifying overlaps and inconsistencies. The FDS project also aims to explore ways in which innovative technology and harmonized data definitions could be used to optimize supervisory reporting requirements without compromising their objectives. The results, both interim and final, of the first phase of the FDS project will, therefore, directly feed into this assessment of the reporting requirements as they become available. The fitness check will incorporate feedback and data mainly, but not exclusively, from the following sources:
- The public consultation to be held as part of the assessment.
- The Call for Evidence exercise, the results of which are summarized in a Commission Communication of November 23, 2016 (COM(2016) 855 final).
- The review of the European Markets Infrastructure Regulation (EMIR), the results of which were published in a Commission Report of November 23, 2016 (COM(2016) 857 final).
- Any other public consultations or reviews of relevant legislative acts in the financial sector.
- The Financial Data Standardization Project, which is already generating further information on the level of overlaps and inconsistencies between the various reporting frameworks.
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Keywords: Europe, EU, Banking, Securities, Insurance, Evaluation Roadmap, Reporting Requirements, REFIT, Better Regulation, FDS, M4FDS, EC
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