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

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514