Featured Product

    ECB and EIOPA Publish Common Minimum Standards for Data Revision in EU

    June 13, 2019

    ECB and EIOPA published the common minimum standards for supervisory and statistical reporting data by the undertakings in EU. These standards have been agreed on by ECB, EIOPA, national central banks, and national competent authorities. By agreeing on the common minimum standards, all authorities have aligned their expectations for the minimum acceptable level of data quality for the purposes of the different uses of data to be considered for the reporting reference dates after the date of publication. However, these common minimum standards should not prevent stricter practices from being applied at the national level. The national competent authorities and national central banks have the responsibility and the power to request financial institutions to revise data when necessary.

    Given the integrated reporting approach followed for supervisory and statistical reporting to ECB and EIOPA, a common understanding is required about the minimum level of data quality and about when a revision of data is considered necessary. While information reported should be of good quality at the time of its first submission, at a later stage, revisions may be needed on request by the European or national authorities or on financial institutions' own initiative. The common minimum standards specify:

    • Request for revisions—When national competent authorities or national central banks should request financial institutions to revise the data previously submitted
    • Synchronization—The same data has to be available at all levels (that is, financial institutions, ECB, EIOPA) at all times. This means that any revision of data should take place at all levels of the transmission chain to ensure that all parties involved have the same data. Exceptions are possible only where purely operational challenges occur
    • Timeliness—The time when the revisions should be sent by national competent authorities and national central banks to EIOPA and the ECB, respectively
    • Explanatory notes—All non-routine revisions of aggregated data and significant routine revisions of aggregated data should be accompanied by notes from the national competent authority/national central bank explaining what triggered the revision.
    • Notice—For data quality issues in data reported by individual entities, the erroneous flag available in the XML metadata file of the EIOPA Central Repository Specification should be used by the national competent authority to indicate that a revision will be needed; alternatively, the national competent authority should send an e-mail informing EIOPA about the need for revision.
    • Need for historical revisions—When an issue is identified, which would lead to significant revisions and which also affects back-data, revisions should be provided at least as far back as technically possible, given the operational limitations of the data collection infrastructure.

    Data quality is crucial in any data management process. Data reported under the EU Solvency II framework for insurance and reinsurance undertakings are used by national competent authorities in the supervisory review process and by most national central banks as input in the compilation of insurance corporation statistics. National competent authorities also submit the supervisory information to EIOPA while national central banks submit the derived statistical information to ECB.

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Solvency II, Reporting, Common Minimum Standards, Data Quality, SREP, Statistical Reporting, ECB, EIOPA

    Featured Experts
    Related Articles
    News

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    News

    FCA Proposes More Measures to Help Insurance Customers Amid Crisis

    FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.

    October 21, 2020 WebPage Regulatory News
    News

    EBA Issues Opinion to Address Risk Stemming from Legacy Instruments

    EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.

    October 21, 2020 WebPage Regulatory News
    News

    ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020

    ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).

    October 21, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    APRA Initiates Action Against a Bank for Liquidity Compliance Breach

    APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.

    October 21, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2

    PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Reduce Impact of Large Bank Failures

    US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule on Net Stable Funding Ratio Requirements

    US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.

    October 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6004