COREP FINREP Reporting: A Primer | Datatracks

COREP FINREP Reporting: A Primer. In response to the global financial crisis, the European Commission decided that it was time that high ... January14,2016August24,2021AnupamDas    ReadingTime:3mins COREPFINREPReporting:APrimer Inresponsetotheglobalfinancialcrisis,theEuropeanCommissiondecidedthatitwastimethathighqualityregulatoryreportingwasimplementedbyscrutinisingthefinancialdataofcompaniesinmuchmoredetail.Consequently,toalignwiththeinternationalbankcapitalrequirements,on20thJuly2011,itsubmittedanumberofproposalstoimplementtherecommendationsonBankingSupervisionproposed(commonlyknownastheBaselIII)bytheBaselCommittee. UndertheCommission’sproposals,thecurrentCapitalRequirementsDirective(CRD)hasbeendividedintotwolegislativeinstruments:theCapitalRequirementsRegulation(theCRR)andtheCRDIVDirective. ThroughitsCapitalRequirementsDirective(CRD)IV,theEuropeanCommissionhasmadeitmandatoryfortheEuropeanBankingAuthority(EBA)todevelopImplementingTechnicalStandards(ITS)relatedtosupervisoryreportingrequirements.BesidesthemaingoalofaligningtheprudentialrequirementsacrossEuropeancountries,CRDIVhasalsomadeproposalsoncorporategovernanceandremuneration.Inresponsetothismandate,theEBAhasdevelopedCommonReporting(COREP)andFinancialReporting(FINREP)astwoframeworksthatwillapplyacrossEurope. COREPandFINREP:AnIntroduction COREPistheframeworkfortheCapitalRequirementsDirectivereportingofrisk(BaselIII)under5components:CapitalAdequacy,GroupSolvency,CreditRisk,OperationalRiskandMarketRisk.ThiscameasasolutiontotheproblemsfacedbyCreditinstitutionsandInvestmentsFirmsintakingriskrelateddecisionsinatimelymannerduringthegreatEuropeanfinancialcrisisatanearlierperiod.COREPwasadoptedbytheFinancialServicesAuthority(FSA)fortheUKbankingindustryfrom31December2012. TheFSAhasmandatedthatintheUK,COREPwillapplytoallCreditInstitutionsandtheInvestmentsFirmswhoareregulatedunderIFPRU(theFSA’sprudentialsourcebookforInvestmentFirms). WhileCOREPisacapitalreportingregime,FINREPisitsfinancialcounterpart.ItisaframeworkgivenbyEBAforreportingfinancial(accounting)informationtotheregulatorwhichwillbeapplicabletoallCreditInstitutionsintheEuropeanUnion.BanksmustnowplantoadjusttheirreportingmodelsandrequirementstoadheretothetechnicalstandardspublishedbytheEBAon26July2013. BetweenCOREPandFINREP,thelatterisnarrowerinitsscopebecauseitappliestoCreditInstitutionsreportingonaconsolidatedbasisapplyingIFRS(InternationalFinancialReportingStandards).COREP,ontheotherhandrequiresconsolidatedreportingaswellassoloreportingentitybyentity. Objectives Attheheartofthesetwoframeworks,COREPandFINREP,liesthemaingoalofempoweringbankswithgreatercapabilitiestoaggregateriskdataandhighqualityinternalriskreportingpractices.Themainobjectivescanbesummarizedas: Toaidtheseniormanagementinbankingorganisationsinimprovedfinancialandriskdecisionmaking,aswellasstrategicplanningbyenhancingtheverystructureofregulatoryreporting. Tofacilitatetrendpredictionsandtherebymacroandglobalassessmentofriskbycreatingacommonbasisforfurnishingregulatoryinformation. TomakeregulatoryreportingfasterandmorestandardisedbyestablishingacentralrepositoryforEuropeanbankingdata. TobringtheEuropeanreportingrequirementsontoasinglecommonplatformandeliminatethedeviationscausedbydifferentsupervisorsintheEU. Impactonorganisations Thereisasignificantimpactonorganisationsasfarasimplementationisconcerned.Bankshavetograpplewiththeimplementationofmultiplenewreportingregimesbydedicatingsubstantialfinancialandhumancapitalresources.WhilesomeofthedatasetsunderCOREP/FINREParecompletelynew(fore.g.replacementofFSAreports),overalltheframeworksrequiredataatamuchmoregranularlevel.Asaresult,organisationsneedtoreviewdatatheycurrentlycollect,conductagapanalysisandidentifytheadditionaldataneeds,toincludetheadditionaldatareporting. TheothernewaspectthatcomesinwithCOREPandFINREPismandatoryXBRLreporting.Thiswillrequirefirmstoreviewtheirreportingmodelandsoftware.SoftwareapplicationslikeMSExcelmaynolongerbeabletohandlethelevelofgranularityrequirednow. UnderFINREPalone,thescopehasexpandedbothinthenumberoftemplatesforsubmissionandthelevelofdetail: 53newforms/templateswith6,500+datafields. Quarterlyreportingismandatoryandsubmissionsareduewithin42calendardaysafterthequarterends. Moreover,re-submissionofauditedfiguresisalsomandatory(forcompanieswhoaresubjectedtoaregulatoryaudit,thedatamustberesubmittedoncetheauditiscomplete). Watchthisspaceformoredetails,comingyourwaysoon. AboutDataTracks:DataTracksLimitedisasubsidiaryofDataTracksServicesLimited.Withatrackrecordofmorethan10years,DataTracksisagloballeaderinpreparationoffinancialstatementsinXBRLandiXBRLformatsforfilingwithregulators.DataTrackspreparesmorethan12,000XBRLstatementsannuallyforfilingwithregulatorssuchasSECintheUnitedStates,HMRCintheUnitedKingdom,RevenueinIreland,ACRAinSingaporeandMCAinIndia. Theviewsexpressedarethatoftheauthor’sandDataTracksisnotresponsibleforthecontentsorviewsexpressedtherein.Ifanypartofthisblogisincorrect,inappropriateorviolatestheIPrightsofanypersonororganization,pleasealertusatceo@datatracks.com.Wewilltakeimmediateactiontocorrectanyviolation TofindoutmoreaboutDataTracks,[email protected]. Getthelatestupdates inyourinbox Nameismissing Emailismissing Emailisnotvalid SignUp ScheduleADemo ScheduleADemo FullName OfficialEmail Contactnumber Company ---ESEFAFIMDCRDIVSolvencyIIMIFIDIIFATCA SelectProduct Comments Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustocontactyouandprovideyoubetterservice.FormoreinformationpleasereferourPrivacyPolicy Cancel Cookieshelpusimproveyouronlineexperience,ourwebsitefunctionalityandservices.AdditionaldetailsareavailableinourPrivacyPolicy.AcceptcookiesandaccessthewebsitePrivacy&CookiesPolicy Close PrivacyOverview Thiswebsiteusescookiestoimproveyourexperiencewhileyounavigatethroughthewebsite.Outofthese,thecookiesthatarecategorizedasnecessaryarestoredonyourbrowserastheyareessentialfortheworkingofbasicfunctionalitiesofthewebsite.Wealsousethird-partycookiesthathelpusanalyzeandunderstandhowyouusethiswebsite.Thesecookieswillbestoredinyourbrowseronlywithyourconsent.Youalsohavetheoptiontoopt-outofthesecookies.Butoptingoutofsomeofthesecookiesmayaffectyourbrowsingexperience. Necessary Necessary AlwaysEnabled Necessarycookiesareabsolutelyessentialforthewebsitetofunctionproperly.Thiscategoryonlyincludescookiesthatensuresbasicfunctionalitiesandsecurityfeaturesofthewebsite.Thesecookiesdonotstoreanypersonalinformation. Non-necessary Non-necessary Anycookiesthatmaynotbeparticularlynecessaryforthewebsitetofunctionandisusedspecificallytocollectuserpersonaldataviaanalytics,ads,otherembeddedcontentsaretermedasnon-necessarycookies.Itismandatorytoprocureuserconsentpriortorunningthesecookiesonyourwebsite. SAVE&ACCEPT Subscribetoreceivetimelyupdates Name E-mail Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyNotice × ESEF-ScheduleaDemo Name ContactNo Email Company Country Comments Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustocontactyouandprovideyoubetterservice.FormoreinformationpleasereferourPrivacyPolicy × AIFMDBrochureDownload Name* E-mail* Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyNotice × CRDIVBrochureDownload Name* E-mail* Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyNotice CLOSE MIFIDIIBrochureDownload Name* E-mail* Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyNotice × SolvencyIIBrochureDownload Name* E-mail* Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyNotice CLOSE ESEFBrochureDownload Name* E-mail* Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyNotice × FATCABrochureDownload Name* E-mail* Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyNotice CLOSE EUFATCAScheduleaDemo Name ContactNo Email Company Country Comments Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustocontactyouandprovideyoubetterservice.FormoreinformationpleasereferourPrivacyPolicy × EUMiFIDScheduleaDemo Name ContactNo Email Company Country Comments Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustocontactyouandprovideyoubetterservice.FormoreinformationpleasereferourPrivacyPolicy × EUSolvencyScheduleaDemo Name ContactNo Email Company Country Comments Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustocontactyouandprovideyoubetterservice.FormoreinformationpleasereferourPrivacyPolicy × EUCRD-IVScheduleaDemo Name ContactNo Email Company Country Comments Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustocontactyouandprovideyoubetterservice.FormoreinformationpleasereferourPrivacyPolicy × AIFMD-ScheduleaDemo Name ContactNo Email Company Country Comments Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustocontactyouandprovideyoubetterservice.FormoreinformationpleasereferourPrivacyPolicy × DownloadBrochure Name Company WorkEmail Mobile Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyNotice × RequestaQuote Name* OfficialE-mail* ContactNumber Message Terms Yes,IgivemyconsenttoDataTrackstocontactmebasedontheinformationprovidedaboveandmayunsubscribeatanytime.ReadourPrivacyPolicyfordetailsonhowyourinformationmaybeused. CLOSE RequestaCall Name* OfficialE-mail* ContactNumber Terms Yes,IgivemyconsenttoDataTrackstocontactmebasedontheinformationprovidedaboveandmayunsubscribeatanytime.ReadourPrivacyPolicyfordetailsonhowyourinformationmaybeused. CLOSE RequestaDemo Name* OfficialE-mail* ContactNumber Message Terms Yes,IgivemyconsenttoDataTrackstocontactmebasedontheinformationprovidedaboveandmayunsubscribeatanytime.ReadourPrivacyPolicyfordetailsonhowyourinformationmaybeused. × DownloadBrochure Name* OfficialE-mail* ContactNumber Message Terms Yes,IgivemyconsenttoDataTrackstocontactmebasedontheinformationprovidedaboveandmayunsubscribeatanytime.ReadourPrivacyPolicyfordetailsonhowyourinformationmaybeused. × RequestaDemo Name* OfficialE-mail* ContactNumber Message Terms Yes,IgivemyconsenttoDataTrackstocontactmebasedontheinformationprovidedaboveandmayunsubscribeatanytime.ReadourPrivacyPolicyfordetailsonhowyourinformationmaybeused. × Signup   Firstname Lastname Youremail Phonenumber Company Country What’sthisabout? Terms Yes,IgivemyconsenttoDataTrackstocontactmebasedontheinformationprovidedaboveandmayunsubscribeatanytime.ReadourPrivacyPolicyfordetailsonhowyourinformationmaybeused. × RequestaDemo   Name CompanyName Youremail ContactNumber PreferredTimeSlot ---HMRCWebsiteInternetSearchReferralOthers Howdidyougettoknowaboutus? Tellusmore ReferredBy? Terms Yes,IgivemyconsenttoDataTrackstocontactmebasedontheinformationprovidedaboveandmayunsubscribeatanytime.ReadourPrivacyPolicyfordetailsonhowyourinformationmaybeused. × SoftwareSignup   Name CompanyName Youremail ContactNumber FillingFrequencyMonthly(No.ofentities) FillingFrequencyQuarterly(No.ofentities) ---BusinessAgent UserType ---HMRCWebsiteInternetSearchReferralOthers Howdidyougettoknowaboutus? Tellusmore ReferredBy? Terms Byclickingthisyouwillprovideconsenttoprocessyourdata.Thiscollectedinformationwillhelpustoprovideyouquotetoprovideyoubetterservice.FormoreinformationpleasereferourPrivacyPolicy × RequestaQuote   Name Youremail ContactNumber Iaminterestedin iXBRLtaggingiXBRL+CT600filingCbCRMTD Message ---HMRCWebsiteInternetSearchReferralOthers Howdidyougettoknowaboutus? Tellusmore ReferredBy? Terms Yes,IgivemyconsenttoDataTrackstocontactmebasedontheinformationprovidedaboveandmayunsubscribeatanytime.ReadourPrivacyPolicyfordetailsonhowyourinformationmaybeused. × [menuname=”Insights_footer”] CLOSE US▼BlogNewsUK