Across 2018, we’re interviewing our in-house experts sharing what trends they’re seeing in the world of regulatory reporting, and what’s on their radar for the next 12 months.
Arkk’s CRD IV expert, John Stump, runs us through:
- the most common challenge faced by COREP filers
- what’s happening with the EBA’s latest regime
- how COREP continues to evolve across Europe.
COREP’s been BAU for some time. What’s changing for filers these days?
It’s BAU for some people – there seem to be two broad categories of the people I’m speaking to. Some firms have been doing COREP since the beginning in 2013. It’s part of their quarterly process, and whilst they’re looking for simpler ways to manage the reporting, they’re accustomed to the requirement.
For others, they’ve recently fallen into scope under some aspect under the CRD IV regime. If you’re business activity varies, then your reporting requirements can change more frequently. With over eight different forms falling under the CRD IV umbrella, knowing exactly what to report can be a challenge. I find when I start talking about COREP, this often leads to discussions around Asset Encumbrance, FINREP, and the EBA’s newest regime.
The EBA’s new regime – what’s happening with that?
The New Capital Requirements aim to simplify the reporting standards currently in place. The EBA has recognised that the current framework is substantial, and for the smaller firms especially the ‘one size fits all’ approach to reporting isn’t appropriate.
Greater streamlining, less ambiguity
The new capital requirements will impact almost any firm holding client money. From what I’ve seen, this could be good for industries where several different regulations are imposed on them. With one requirement covering all firms, this should streamline the process and remove a lot of the ambiguity around what people need to report.
I especially see the regime supporting those in the ‘grey area’ between limited license and full scope reporting. A lot of firms here can fall in and out of scope for certain elements of CRD IV depending on their business activity. The new class system should clarify this.
This month’s morning briefing with our partners at Bovill answered a lot of questions around the EBA’s latest requirement. My main aim here is to make sure that all firms impacted know how they need to prepare. It’s easy to consider the 2019 deadline a long way off, especially when your day job is not just regulatory reporting. However, we’ve seen lasts minute mad rushes in the past where firms realise that on top of their data aggregation, they must submit in XBRL format. I’ll be helping clients get ahead of the curve on this one, and equip them with the knowledge of what’ll be expected.
The XBRL mandate continues to spread across Europe
Yes, when Arkk first launched their CRD IV conversion tool in the UK, it was a simple solution to a complex problem – the XBRL conversion.
What’s been most interesting for me to see is how many jurisdictions are switching to XBRL in 2018. I’ve been working with clients in Ireland, Iceland and Greece in the past six months, who could submit all or part of their CRD IV requirements in Excel, but now must use XBRL. This does suggest that XBRL will become the standard globally for EBA returns, and falls in line with various other trends around making financial report digital and easy to analyse.
More burning COREP questions?
If you have other COREP questions on your mind, drop us a line and we’ll put you in touch directly with John.