AGILE Newsletter Issue 16 | H1 | 2024
Date
/ AGILE wins “Best MAS 610 Solution” in the RegTech Insights Awards APAC 2024
In a testament to its commitment to excellence and innovation, VERMEG has been honored with the prestigious RegTech Insights Award APAC 2024 as Best MAS 610 Solution for its AGILE Regulatory Reporting Solution.
This recognition underscores VERMEG’s dedication to providing exceptional RegTech solutions that meet the unique needs of participants in the Asia-Pacific (APAC) region.
/ The Monetary Authority of Singapore (MAS) has published an information paper on Data Governance and Management practices at banks
The Monetary Authority of Singapore (MAS) has published an information paper on 29th May’24 identifying several gaps in data governance and management practices at some banks, based on thematic inspections conducted in 2022/23.
To check the Key observations: Read More
/ New Guidelines and Updates to FAQs for OTC Derivatives Reporting Issued by MAS
Further to responses to feedback on proposed changes to the OTC Derivatives Reporting regime under the Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013 that were published in May 2023, the Monetary Authority of Singapore (MAS) issued new guidelines and updates to FAQs for the reporting of over-the-counter (OTC) derivatives contracts on 31st May, 2024. These reporting requirements will take effect on October 21, 2024.
/ The Hong Kong Taxonomy for Finance released by Hong Kong Monetary Authority (HKMA) to facilitate Sustainable Investments
The Hong Kong Monetary Authority (HKMA) in May’24 released the Hong Kong Taxonomy for Sustainable Finance. This framework aims to support informed decision-making and facilitate the flow of funds into sustainable investments. Initially, a discussion paper was issued in May 2023 to gather feedback on a prototype classification framework. After refining it based on consultations, the Hong Kong Taxonomy was finalized, covering 12 economic activities across 4 sectors: power generation, transportation, construction, and water and waste management. It draws from the Common Ground Taxonomy, enabling easy comparison with Mainland China’s and the European Union’s taxonomies.
To discover the core principles underlying the Hong Kong Taxonomy for Sustainable.
/ The Financial Conduct Authority (FCA) – Policy Statement PS24/3
The Financial Conduct Authority (FCA) has issued Policy Statement PS24/3, which provides conclusive regulations and guidance for integrating three new Product Sales Data (PSD) returns into Chapter 16 of the Supervision manual (SUP 16). These new PSD returns aim to enhance the FCA’s data collection on the consumer credit market from providers of consumer credit products, including comprehensive information on both the initial sale and ongoing performance of individual agreements.
PS24/3 encapsulates feedback from stakeholders and the subsequent FCA response, delineating the final regulations and guidance for integrating the three new PSD returns into SUP 16.
If you are impacted by these new reports, make sure to check the implementation timelines as they have been extended depending on the size of the firm.
The PRA recently released its 2024/25 business plan, for the key highlights
/ Further thoughts on Prudential Regulation Authority (PRA)
On 30 April 2024, the Prudential Regulation Authority (PRA) issued consultation paper CP6/24, proposing minor amendments to its rules and introducing a new rule to the Policyholder Protection section of the PRA Rulebook. Chapter 5 developed jointly with the Financial Conduct Authority (FCA), details changes to technical standards for risk mitigation techniques in over-the-counter derivative contracts not cleared by a central counterparty.
To see the proposed changes in CP6/24:
/ The new Contingent Leverage report (LRV002)
The new Contingent Leverage report (LRV002) is fast approaching. The first reference reporting is 30th June 2024 and the submission date set for 9th August 2024.
These new supervisory reporting requirements apply to LREQ firms and were introduced by the PRA (PS5/23) in 2023, alongside enhancements to ICAAP assessments of contingent leverage risk.
To see what is new: Read More
/ FRTB delayed in EU
The EU will delay key provisions of post-crisis banking reforms by a year due to expected US delays in implementing Basel III rules, aiming to maintain competitive parity.
France championed this move, raising doubts about the enforcement of the reforms intended to enhance financial stability. The deferral affects the “fundamental review of the trading book” (FRTB), now postponed to January 2026.
/ DORA: Digital Operational Resilience Act
In the EU, The Digital Operational Resilience Act (DORA), effective since January 2023, is a European Regulation aimed at enhancing the IT risk controls of financial organizations to boost their resilience against cyber threats.
It addresses the gap between rising IT threats and current resilience measures by supplementing existing laws such as the NIS2 Directive and GDPR.
/ IRef: Integrated Reporting Framework
To alleviate issues firms have faced with Regulatory Reporting, the European Central Bank (ECB) introduced the Integrated Reporting Framework (IReF). This initiative aims to standardize and harmonize the European System of Central Banks (ESCB) statistical frameworks, reducing the reporting burden on euro area banks.
/ FinTalk Sessions
Season 3 is well under way and during the second quarter of FinTalk, we uncovered the evolving world of financial crime, explored the impact of RegTech, AI, and data quality in Finance, decoded the complexities of the Basel 3.1 regulations and dived into the world of SME lending.
Tune in for expert insights and stay ahead of the curve in our upcoming episodes
/ FutureFit Conference – 25th September 2024 – London
We are excited to announce that our FutureFit London Conference is back this year and will be held on 25 September 2024. FutureFit London is where Reg meets Tech, bringing together industry leaders and professionals for what is currently the largest Regulatory Reporting conference in the UK. Over the course of the day we embrace collaboration and innovation bringing you a diverse range of speakers and the latest updates in all things RegTech.
This year’s conference will focus on significant Regulatory themes including topics such as the latest updates on Basel 3.1, the Strong and Simple framework and the Senior Managers regime along with the latest developments in ESG, Crypto, IReF and DORA. This year we are taking FutureFit to heart of the City at The Banking Hall, a fitting venue to talk about the future of RegTech.
Please follow this link to register your interest in attending
/ Call Report Revisions – Loans to NDFI
The Regulatory Agencies have announced updates to the forms and instructions of the Call Reports—FFIEC 031/041/051 and FFIEC 002—to increase the granularity in reporting exposure to Non-Depository Financial Institutions (“NDFI”) and to improve reporting consistency. The updates are effective for December 2024 reporting period.
/ Modifications to borrowers experiencing financial difficulty
The Regulatory Agencies have implemented, effective June 2024, regulatory reporting changes to all three versions of the Call Report (FFIEC 031, FFIEC 041, and FFIEC 051).
The revisions to the reporting forms and instructions for the Call Reports relate to the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (ASU 2022-02).
Specifically, in response to ASU 2022–02, the revisions would align the data collected in the Call Report forms and instructions with the definition of loan modifications to borrowers experiencing financial difficulty that is used in U.S. generally accepted accounting principles (GAAP). The agencies have replaced, as appropriate, references to “troubled debt restructurings” with “modifications to borrowers experiencing financial difficulty” in the Call Report forms and instructions, where these types of loans are reported, i.e., RC–C, Part I, Loans and Leases, Memorandum item 1, and Schedule RC–N, Past Due and Nonaccrual Loans, Leases, and Other Assets.
/ Basel Reforms Whitepaper
Basel Standards for capital adequacy have been around since the 80’s with major revisions over time increasing both the levels of complexity and scope. Now, as we approach the prescribed 2028 end date of the latest revisions, we are in the final stages of what has been a significant program of regulatory change. In our latest whitepaper we take readers back to the origins of the Basel Reforms, looking at the objectives and scope of each major Basel Reform up to the most recent changes. We provide a comprehensive overview of both the scope and current status of implementation around the world including regional variations and provide a valuable resource for professionals seeking both a global overview of the latest changes, with practical considerations to approach implementation strategically
/ Regulatory Reporting Website Updates
In recent years Regulatory Reporting has undergone huge changes, with firms looking for increased effectiveness, improved efficiency and greater transparency across the reporting process. At VERMEG, we understand the importance of this and as a result, we dedicated our new mission to it:
“Efficient, effective and transparent RegTech through digital transformation”
AGILE Suite 24.2 Upgrade
Another year, another set of improvements to the AGILE Suite…
:Discover AGILE Calcs Enhancements
: Discover AGILE Reporter Enhancements
Download AGILE Reg Reporting Newsletter H1 2024
VERMEG REG DESK