Regulation & Standards special report
![ird-reg-standards-report-1114-cover ird-reg-standards-report-1114-cover](/sites/default/files/styles/landscape_750_463/public/import/IMG/701/304701/ird-reg-standards-report-1114-cover.jpg.webp?h=099fbc17&itok=QVbqop9X)
November 2014 -- Sponsored by SIX Financial Information
Click here to download the PDF
The Seeds of a Turnaround
In the Q&A with Dilip Krishna, a director at Deloitte, in this special report on Regulation & Standards, the regulatory expert portrays the financial industry's efforts on regulatory compliance as "uneven." As a result, Krishna says, data management could have been improved if it weren't for a typical "tactical" approach to addressing each piece of regulation as it comes up.
In the Virtual Roundtable in this report, however, HSBC's Chris Johnson does see some progress happening when it comes to efforts to upgrade data management processes, especially those spurred by regulatory compliance needs. Asset data usage and accountability is being extended directly to asset owners, who must answer to regulators evaluating their data content. The bar for data quality is rising, in terms of completeness, accuracy and transparency, Johnson says.
Nonetheless, even with these driving forces, the industry still must devote more resources to address their demands, as SIX Financial Information's Jacob Gertel observes. Before even decided what resources should be designated, multi-national corporations have to figure out the differences in requirements from country to country, for rules such as Basel III and Solvency II. Readiness is depending on local regulations and the ability to get compliance in each market.
AIFMD, the Alternative Investment Fund Managers Directive, is adding to the complications, partly by generating more classification data to indicate geography, asset type, issuer, ratings and legal entity identifier (LEI), according to Johnson. Although AIFMD is similar to Solvency II and US Form PF requirements, European markets may have specific and different corollary rules based on AIFMD for their market participants to follow.
All is not lost, despite the apparent weight of tasks resulting from these regulations, as Johnson says that the required new data content, and its quality and governance, is driving increased complexity, and bringing necessary attention to how firms can manage data that has grown organically but without consistent standards. Since the data fabric is entwined deeply in the infrastructure, long-term investment is required and will deliver "lasting improvements," he says. Providers and institutions, Gertel adds, must build systems so new requirements can be introduced more easily.
These insights, as a whole, point to the possibility that regulations have caught the attention of data managers at major global financial institutions enough to get them thinking about taking actions to make compliance easier. It's carrying out such actions that remains a challenge.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Northern Trust offers internal fund accounting, data tools to clients
Regulations and a mandate to enhance quality and transparency in a bid to improve the investor experience are pushing buy-side firms to have more oversight of their third-party providers.
EU firms press for faster move to T+1 after smooth US rollout
Following the example set by North America, 70% of attendees at a European hearing on shorter settlement cycles favored a Q4 2027 switch to next-day settlement.
Finra clears hurdle with CAT launch, but several others remain
Two major components of the consolidated audit trail are now in place. But wrangling over the CAT’s future continues.
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
GenAI: US Fed reveals its five use cases
Internal sandbox used to assess viability and risks; coding and content generation on the agenda.
Zeros and ones: Industry contemplates T+0 as the next step
With the North American transition to T+1 settlement complete, same-day settlement could be the next goalpost set, though skeptics are many.
The IMD Wrap: Déjà vu as exchange data industry weighs its options
Max highlights some of WatersTechnology’s recent reporting on data costs and capacity issues facing the options industry, and asks, haven’t we seen this before somewhere?
FRTB data quality issues persist amid shifting implementation dates
Banks are finding market and reference data challenges posed by the FRTB’s standardized model tricky, compounded by uncertainty over when the regulation will take effect.