Financial Data Standardisation Project

Transcription

1 Financial Data Standardisation Project 23 rd Eurofiling Workshop, ECB, Frankfurt 8 June 2017 Peter van den Hul DG FISMA - European Commission peter.van-den-hul@ec.europa.eu 1

2 Background About DG FISMA REFIT programme Call For Evidence FDS Project is concrete initiative 2

3 Objectives of the FDS project Share more efficiently financial data by enhancing interoperability of data standards Reduce compliance costs that arise in the context of legal reporting requirements by applying the "once for all" principle in data reporting Explore solutions improving the way data can be used by (or shared between) authorities Improve monitoring of the allocation and evolution of risk in the EU/global financial system 3

4 Who is impacted? 4

5 The Regulatory Scene. The three parties. We report a multitude of Regulatory Reports to multiple Supervisors in different formats nnn.000+ regulated legal entities in the Financial Sector across Europe European Union with its governance bodies DATA EXCHANGE We frequently adjust and increase legislation to stay aligned with the real world In our role as Supervisors, we receive and validate Regulatory Reports to oversee the Financial Sector European Regulators & Supervisors ESA s, NCA s, ECB (SSM), 5

6 The dual constraint on We report a multitude of the Regulatory Scene. Regulatory Reports to multiple Supervisors in different formats regulated legal entities in the Financial Sector across Europe COMPLIANCE COST European Union with its governance bodies DATA EXCHANGE We frequently adjust and increase regulation to stay aligned with the real world RISK MONITORING AREA In our role as Supervisors, we receive and validate Regulatory Reports to oversee the Financial Sector European Regulators & Supervisors ESA s, NCA s, ECB (SSM), 6

7 EFFICIENCY According to the CfE SAME LEVEL OF MONITORING AT LESS COMPLIANCE COST To have an objective view, the FDS project analyses inconsistencies, duplications, overlaps, redundancies and possible synergies. COST 7

8 Maybe we can improve? EFFICIENCY IMPROVED LEVEL OF MONITORING AT THE SAME COMPLIANCE COST The FDS project studies the potential for standardisation and innovative reporting technology to shift the reporting efficiency frontier upwards COST 8

9 We started analysing 9

10 FDS analyses top down and bottom up GAPS, OVERLAPS? LEGISLATIVE ACTS: L1MS, L2MS top down analysis 50+ REPORTING FRAMEWORKS REPORTING OBLIGATIONS GAPS, OVERLAPS?

11 Intermediate conclusion : regulatory measures* set the basis for 50+ Reporting Frameworks LEVEL 1 MEASURES (internal refs) 1, 7, 8, 9, 10, 12, 63, 66, 69, 72, 73, 75, 81, 82, 85, 90, 91, 95, 97, 104, 108, 110, 112, 113, 119, 123, 124, 133, 134, 135, 136, 137, 139, 143, 147, 148, 149, 162, 164, 167, 169, 170, 181, 187, 197, 214, 241, 244, 245, 256, 257, 270, 272, 274, 276, 280, 286, 291, 293, 294, 299, 308, 311, 315, 323, 324, 331, 344, 348, 352, 356, 359, 360, 366, 375, 382, 383, 386, 387, 389, 391, 750, 779, 798, 839, 840, 1070 * the current scope is the FISMA regulation. LEVEL 2 MEASURES (internal refs) 2, 3, 89, 99, 102, 105, 106, 117, 118, 125, 128, 138, 154, 158, 163, 165, 166, 168, 172, 173, 176, 184, 196, 202, 205, 206, 215, 217, 219, 221, 229, 232, 233, 234, 243, 259, 262, 263, 268, 269, 275, 281, 283, 284, 287, 297, 298, 300, 301, 302, 304, 305, 306, 313, 325, 326, 343, 346, 357, 358, 361, 363, 364, 365, 372, 392, 393, 394, 395, 396, 397, 398, 399, 400, 401, 402, 403, 404, 405, 406, 407, 408, 409, 410, 411, 412, 413, 414, 415, 417, 418, 419, 422, 427, 430, 434, 435, 437, 438, 439, 440, 442, 444, 445, 446, 447, 448, 449, 451, 454, 455, 456, 457, 458, 459, 460, 464, 465, 469, 471, 472, 473, 474, 477, 480, 481, 482, 483, 484, 485, 486, 487, 488, 489, 490, 491, 492, 500, 501, 502, 503, 504, 505, 509, 516, 517, 518, 519, 520, 521, 523, 526, 527, 528, 529, 530, 531, 532, 533, 534, 535, 536, 537, 538, 539, 540, 541, 542, 543, 545, 547, 548, 549, 550, 551, 552, 553, 554, 555, 556, 557, 558, 559, 560, 561, 562, 563, 565, 566, 567, 568, 569, 570, 571, 572, 573, 575, 576, 577, 578, 579, 580, 581, 582, 588, 589, 590, 591, 592, 596, 597, 598, 599, 600, 603, 604, 607, 608, 610, 622, 624, 629, 630, 631, 632, 633, 634, 635, 636, 637, 638, 639, 640, 641, 642, 643, 644, 645, 646, 647, 648, 649, 650, 651, 652, 653, 673, 674, 675, 676, 677, 678, 679, 680, 683, 692, 693, 694, 695, 696, 697, 746, 747, 748, 751, 752, 753, 754, 755, 756, 758, 759, 760, 762, 763, 764, 771, 772, 773, 774, 775, 777, 786, 787, 788, 789, 795, 813, 814, 815, 816, 817, 818, 820, 821, 822, 825, 828, 829, 830, 831, 832, 833, 834, 835, 836, 837, 871, 874, 875, 877, 878, 879, 880, 881, 882, 884, 886, 892, 893, 894, 896, 898, 899, 900, 901, 902, 903, 904, 907, 908, 909, 910, 911, 912, 913, 919, 920, 921, 934, 943, 954, 955, 956, 957, 963, 975, 1000, 1003, 1014, 1015, 1017, 1117, 1121, 1126 Examples: CRD IV, Solvency II, AIFMD, CSDR, 5O+ Reporting Frameworks 11

12 Who is involved in these Reporting Frameworks? A number of EU bodies is involved in the Reporting Frameworks or practically implementing them. EU Bodies and roles in Reporting Frameworks Implements Involved European Commission 1 27 Member States European Securities and Markets Authority 19 4 European Banking Authority 8 13 European Insurance and Occupational Pensions Authority 5 4 European Central Bank 1 4 European Supervisory Authorities 2 European Systemic Risk Board 1 European Payments Council 1 Committee of European Banking Supervisors 1 European System of Central Banks 1 International Accounting Standards Board 1 Committee of European Auditing Oversight Bodies 1 Council of Bureaux 1 Single Resolution Board 1 Note: it needs to be stated that other frameworks are (being) made by ECB. Maybe the scope should be extended to include the missing Reporting Frameworks. 12

13 FDS focuses on Structured Data Reporting Frameworks Many Reporting Frameworks result in periodical data exchange between Regulated Entities and Supervisors. In many cases, the Regulator has imposed a data exchange format, or has explicitly described metadata. Hence, we speak about structured data. 13

14 Ranking Criteria Market size Reporting population Report size Reporting frequency Potential business discrepancies between national implementations 14

15 EC EBA Member States EIOPA ECB ESMA ESCB CEAOB SRB Shortlist of 22 Structured Data Reporting Frameworks Structured Data Reporting Frameworks impose Regulatory Reporting in structured templates or predetermined formats. RankReporting Framework Structured data? Active? 1 CRR/CRD IV Yes Yes X P X X X 2 Solvency II Yes Yes X P 3 MiFID II/MIFIR Yes No X X P 4 IORP Yes Yes P 5 EMIR Yes Yes X P 6 MIFID I Partially Yes P 7 AIFMD Yes Yes P 8 CSDR Yes Yes X X X P 9 Transparency Directive Partially Partially P 10 Statutory Audit Regulation (SAR) Partially Yes X X P X X 11 SRM Yes Yes X X X P 12 SFTR Yes Partially P X 13 NEW DGS Directive Yes Yes X X P 14 AoIU Partially Yes P 15 PRIIPs Regulation Partially Partially X P X 16 Short Selling Regulation (SSR) Yes Yes X P 17 BRRD Yes Yes X P X X 18 UCITS (IV) Directive Partially Partially X P 19 MCD Partially Partially X P X 20 Credit Rating Agencies Regulation/Directive CRAR/CRAD Yes Yes X P 21 UCITs (V) Directive Partially Partially X X P 22 Market Abuse Directive/Regulation (MAD/MAR) Yes Partially X P 15

16 The challenge The challenge. Burden 22 REPORTING FRAMEWORKS Can one team solve this puzzle? Multiple deciders Datapoints Changing Complexity Multi-stakeholder Completeness check 16

17 Vision of the FDS project In order to safeguard the stability of the European Union's financial system, reporting burden must be contained by striving for a report once principle, which will lead to more efficient reporting of financial data, more efficient monitoring of the financial system (banks, insurance companies, and financial markets) and better risk assessment by Supervisory Authorities. For this, it s necessary to first centrally define once the contents of reporting frameworks by creating one Core Supervisory Vocabulary which acts as pivotal stone and enables Regulatory Authorities to control overlaps with existing and emerging reporting frameworks in a self-improving philosophy. 17

18 How to achieve the goals Organise initiatives at the center of the Regulatory Scene, involving : Stakeholders from regulating authorities Representative stakeholders from the regulated entities European public body in charge of standardization leveraging on European initiatives : European Interoperability Framework (EIF) ISA² on Interoperability Solutions Core Business Vocabularies going for self-improving mechanisms. 18

19 European Interoperability Framework (EIF) for European public services 19

20 What is a core vocabulary? Simplified, re-usable, and extensible data models that capture the fundamental characteristics of a data entity in a context-neutral and syntax-neutral fashion See also: e-government Core Vocabularies Handbook e/core-vocabularies-v20 20

21 Define once. 21

22 Basic initiative: core vocabularies 22

23 Example of one link in a reporting template (simplified and partial view) Id Link Label (en) Id Id Link Link Label Label (en) (en) Id Id FAFACDDB-DC17-48ab- Link Link Label Label Carrying (en) (en) Id Id FAFACDDB-DC17-48ab- FAFACDDB-DC17-48ab- B8A3-B2311DA155BE Link Link Label Label Carrying Carrying amount (en) (en) FAFACDDB-DC17-48ab- FAFACDDB-DC17-48ab- B8A3-B2311DA155BE B8A3-B2311DA155BE Carrying Carrying amount amount FAFACDDB-DC17-48ab- FAFACDDB-DC17-48ab- B8A3-B2311DA155BE B8A3-B2311DA155BE FCFDBEDB-FA54-1a25- FCFDBEDB-FA54-1a25- Carrying Carrying amount amount Assets Assets B8A3-B2311DA155BE B8A3-B2311DA155BE FCFDBEDB-FA54-1a25- FGA3-C2341DA155BE FGA3-C2341DA155BE amount amount Assets FCFDBEDB-FA54-1a25- FCFDBEDB-FA54-1a25- FGA3-C2341DA155BE Assets Assets FCFDBEDB-FA54-1a25- FCFDBEDB-FA54-1a25- FGA3-C2341DA155BE FGA3-C2341DA155BE CBFACDDB-DC17-48ab- CBFACDDB-DC17-48ab Assets Assets Central Central Banks Banks FGA3-C2341DA155BE FGA3-C2341DA155BE CBFACDDB-DC17-48ab- B8A3-B2311DA155BE B8A3-B2311DA155BE Central Banks CBFACDDB-DC17-48ab- CBFACDDB-DC17-48ab- B8A3-B2311DA155BE Central Central Banks Banks CBFACDDB-DC17-48ab- CBFACDDB-DC17-48ab- B8A3-B2311DA155BE B8A3-B2311DA155BE ABCBFACDDB-DC ABCBFACDDB-DC Central Central Cash Cash Banks Banks and and cash cash B8A3-B2311DA155BE B8A3-B2311DA155BE ABCBFACDDB-DC ABCBFACDDB-DC GZA3-B211DA155BE GZA3-B211DA155BE Cash Cash balances balances and and cash cash ABCBFACDDB-DC GZA3-B211DA155BE GZA3-B211DA155BE Cash balances balances and cash ABCBFACDDB-DC ABCBFACDDB-DC GZA3-B211DA155BE FFRT34CDDB-DC FFRT34CDDB-DC Cash Cash balances Domestic Domestic and and cash cash GZA3-B211DA155BE GZA3-B211DA155BE FFRT34CDDB-DC FFRT34CDDB-DC A34A3-B211D1235BE A34A3-B211D1235BE balances balances Domestic Domestic activities activities FFRT34CDDB-DC FFRT34CDDB-DC A34A3-B211D1235BE A34A3-B211D1235BE Domestic Domestic activities activities FFRT34CDDB-DC A34A3-B211D1235BE A34A3-B211D1235BE Domestic activities activities A34A3-B211D1235BE activities CRDIV FRAMEWORK Data Point Model TAXONOMY 23

24 The path to one Core Supervisory Vocabulary 24