Research & Thoughts

Regulatory Reporting Snapshot 2

Support with regulatory reporting issues and preparation for outsourcing

The client situation

• A significant part of our client’s daily business is securitization. One key element of the project involved assuring correct regulatory reporting and accounting for this transaction set, going forward.
• Our client also plans to outsource their regulatory reporting tasks to Capco. As a result, detailed preparation was necessary in order to make sure that future processes are executed accurately.

The Factory approach

• Confirm exact reporting requirements. For securitization transactions the correct style of reporting - as defined by the German regulators - needed to be verified. This had to be done on two axes: per report (solvency, large exposure, statistics), and per deal type (receivable, loss provision, accrued interests, residual value, etc.).
• Automate to outsource. Our client carried out many regulatory reporting processes manually. In order to outsource these processes effectively, automation was essential in most cases.
• Understand the total regulatory task. We needed to understand the complete suite of regulatory reports for the whole company and its subsidiaries. This was imperative preparation for successful outsourcing of the detailed tasks involved.
• Enable operational regulatory reporting. Another important task was to enable operational regulatory reporting (in a context where some key resources were missing).

Our client decided to couple its business operations with an IT infrastructure and data center provided by our partner Deutsche Börse AG. The Deutsche Börse web-based user interface, in combination with Capco´s unique internal control system, offers a powerful holistic overview of regulatory filings and underlying data, enabling the user to perform various types of analysis to ensure that regulatory filings are correct.

The Regulatory Reporting Factory solution offers both user workflow management that monitors and determines the process from start to finish and data workflow management automating loading of data, execution of calculation processes and preparation of reports, preventing hold ups and errors, but ensuring timeliness and accountability.

Key benefits

• Clarification is now provided to the accounting department so that transactions are accurately booked.
• Notification is given to the regulatory reporting department of transaction reporting.
• Future proofing There is now an assurance of regulatory reporting compliance for the future.
• Cost reduction and improved risk control Significant cost reduction and minimizing of risks is achieved through outsourcing.