Survey reveals lack of resources and poor data
quality are the main regulatory reporting challenges faced by the
industry
NEW
YORK and LONDON and
TEL AVIV, Israel,
Dec. 6,
2023 /PRNewswire/ -- S&P Global Market
Intelligence today released the findings of its annual Global
Regulatory Reporting Survey, which revealed that resourcing and
data quality management are the main barriers to effective,
accurate and cost-effective transaction regulatory reporting.
Conducted by S&P Global Market Intelligence Cappitech, the
survey found that fewer than half of respondents in the survey
believe their firm are appropriately resourced, even when most
firms have obligations in multiple jurisdictions. When it comes to
data quality, just 19% believe their data quality is "very high"
and more than half identify remediation of existing data as a key
capability.
Struan Lloyd, Head of
Cappitech at S&P Global Market Intelligence, said:
"Ultimately, good data drives effective regulatory reporting and
firms need the right tools and resources to achieve this. In turn,
this will reduce the effort and resources required to meet their
regulatory reporting needs. If they can't achieve this then they
face increased costs, potential fines, and a process that hinders
rather than smooths their regulatory reporting."
The report also highlights a number of positives in the
regulatory reporting space, including that the market participants
are taking an increasingly collaborative approach to facilitate
shared learnings and consistency in reporting, and a commitment to
leveraging technology, including AI (Artificial Intelligence) and
ML (Machine Learning). In part, this is reflected in the growing
use of vendors, with 75% now using a vendor in some capacity, up
from 64% in 2022.
The report also highlights that the market is more prepared for
the swathe of regulatory changes coming in 2024 than for any
previous regulatory reporting changes. Europe is most advanced ahead of European
Market Infrastructure Regulation (EMIR), with 75% of firms prepared
or on track, boding well for the April
2024 deadline, with Commodity Futures Trading Commission
(CFTC) Phase 2 preparations notably improved on previous years at
60% of firms already ready or on track. Firms reported preparations
for Japan Financial Services Agency (JFSA), MAS (Monetary Authority
of Singapore) and
ASIC (Australian Securities and Investments
Commission) regulations are all progressing well, with JFSA
naturally further ahead due to the earlier (April) deadline – 66%
of firms with obligations are fully prepared or confident they will
be.
"Notable in this report is the shift in focus from simply hoping
to meet regulatory requirements and deadlines, to a more focused
and strategic view that encompasses multiple jurisdictions and a
bottom-up approach to identifying resourcing and data quality
challenges and fixing them ahead of time," commented Lloyd. "This
increased maturity within the market is very welcome and will lead
to better, more effective regulatory reporting that more closely
meets the regulators' monitoring and oversight needs."
The report also includes findings on a variety of factors
influencing the regulatory reporting space including vendor
selection, reconciliation and UTI matching and pairing challenges,
and the use of automation and technology.
Conducted in summer 2023, the report is based on responses from
70 professionals across EMEA, UK, North
America and APAC. Most represent banks or asset managers,
with 30% working for other organization types such as brokers,
corporates and proprietary traders.
Find full report here:
https://www.cappitech.com/resources/6th-annual-cappitech-global-regulatory-reporting-survey-2023/
About S&P Global Market Intelligence
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Media Contact:
Sabrina Mayeen
S&P Global | Market Intelligence
+44 (0)20 7176 0495
Sabrina.Mayeen@spglobal.com
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SOURCE S&P Global Market Intelligence