The Luxembourg Bankers’ Association (ABBL) and its members are exploring the possibility of establishing a shared regulatory reporting system for the country.
By building a mutual regulatory reporting utility, or hub would help to save financial institutions spending vast amounts of capital on reporting duties.
A collaborated system would mean raw data processing on a shared platform, and a joint definition of reporting models in harmony with regulation requirements. It could also see data multi-use covering the full spectrum of financial and prudential reporting areas, the group said.
Shared regulatory reporting would adapt banking supervision and statistical data exchange, nurturing transparency of reporting processes, higher data quality, less redundant data deliveries, higher flexibility in case of new requirements, and lower costs.
The ABBL, its digital banking and innovation cluster, and interested members have begun a feasibility study to understand potential challenges and opportunities of a financial reporting hub in Luxembourg. In particular, this research will identify the essential aspects it would need in order to work, by comparing those in other jurisdictions, and expectations of stakeholders such as regulators, and financial institutions.
Founding partners of this project are ABBL, Banque et Caisse d’Epargne de l’Etat, Luxembourg, Banque Internationale à Luxembourg, Banque Raiffeisen & Post Finance, BGL BNP Paribas, Pictet & Cie, and SIX Payment Services.
As agreed by the partners, tax and audit company Grant Thornton Luxembourg will conduct the feasibility study.
In a statement from the association it said, “Over the last decade, banks and other financial services firms have been facing an ever-growing number of regulatory requirements and consequent reporting obligations originating from various national and supranational regulators and supervisors.
“Higher complexity, frequency and variety of reports, with more demand for granularity, often creating data redundancies and inconsistencies, have forced banks to spend more on reporting duties at the expense of other areas of commercial activity.
“In this regard, establishing a shared regulatory reporting utility, platform, or a hub, could be a potential solution also taking into consideration the emergence of new technologies.”
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