Managers can’t rely on Priips delay to start making changes – Confluence

Confluence, specialised in investment data management automation for regulatory, financial and investor reporting and performance calculation and analytics, has extended its regulatory filing capabilities on its Unity NXT Regulatory Reporting platform.

The platform supports entire reporting process for post-trade regulatory filings from one data-centric platform. Confluence has added support for Luxembourg BCL reporting, Central Bank of Ireland MMIF and MMM reporting to the platform.

It also eases the aggregation and reuse of data across multiple filings and regions, simplifying and expediting the regulatory filing lifecycle for asset managers and their service providers.

Speaking to InvestmentEurope, Todd Moyer, executive vice president, global business development at Confluence says the platform is an extension of the data management work Confluence has been doing for many years.

“It is touching on how asset management companies and services providers need to manage data differently based on the pace of regulatory changes in the different global markets. Three years ago, customers came to us with new types of information/data they needed to report on and to store.

“We focused on building out our platform on speed and frequency of changes in the asset management regulatory environment across the world. Most recent additions to the platform allow managers to comply with Luxembourg and Irish central banks’ requirements.”

Moyer stresses that the term “RegTech” has emerged over the past three years in the markets and that there is an urgent need for automation, which he says, remains one of the main concerns expressed by the asset management industry.

“We believe the industry has reached a tipping point and that innovative approaches for managing data and automating processes in regulatory reporting will result in positive disruption. In a recent industry survey Confluence recently conducted, asset managers told us that complying with multiple regulatory regimes is a top priority.”

“There will be losers and winners with this automation challenge as it is no longer possible to handle the complexity of regulatory reporting the manual way. Asset managers and service providers are unfortunately behind where they would like to be regarding the modernisation of their reporting processes,” Moyer argues.

He says Confluence has identified some driving principles that are underscoring the need to automate.

“First, we can no longer spend as much time and money on manual reconciliation of data as we have had to historically. We now have more data and it needs to be provided faster. Secondly, there is a focus on delivering added value to customers as opposed to spending time on manual reconciliation.

“Lastly, and most significantly, we now have a condensed thirty-day window in order to complete what we once had to achieve with quarterly reporting. In this time of change the digitalisation of reporting becomes ever more necessary for our industry,” Moyer explains.

Recently in Europe, a regulation, these of Priips, has been challenged for the first time ever by a broad movement across Europe including various financial players.

Assets managers claimed the deadline set by the EU commission was too tight to make the changes that would eventually meet Priips’ requirements This has resulted in a rewriting of Priips’ draft text and the one-year postponment of Priips’ implementation, that was initially due to occur in January 2017.

“It is probably accurate for most asset managers to say that condensed compliance deadlines set by regulators cannot be met because they do not have the resources to do so. However, I do not believe that regulators will accept this as an excuse in the long term.

“For example, in Europe, though Priips has been delayed that will not always be the case for other regulatory mandates and the market can’t rely on postponement. Furthermore, in the case of Priips, asset managers cannot rely on the delay to start making changes in their processes,” Moyer pinpoints.

“The pace of regulatory changes is speeding up and the amount of data asset managers handle is increasing exponentially. A number of regulatory reports are using figures from 50 to 60 different sources. If you do not have digitalised reporting or have not implemented the technology to address this issue in an automated fashion, there is no chance you will be able to meet new regulation’s requirements,” he concludes.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

Read more from Adrien Paredes-Vanheule

Close Window
View the Magazine

You need to fill all required fields!