Regulatory consultancy

Regulatory consultancy services

Since the financial crisis, there has been a significant increase in both domestic and international regulation, creating complex challenges for firms across the financial services industry.  It has become paramount that firms are able to demonstrate to the regulator that all of their regulatory responsibilities are met and risks mitigated, or risk high penalties and reputational damage.

Matterhorn Reporting Services provides a range of regulatory solutions and services to the financial services industry.  Our highly experienced team provides specialist consulting services to clients across the financial services industry including asset management, wealth management, investment managers, fund administrators, custodians and brokerage firms.

As a trusted partner for clients, we deliver on time, within budget and to the highest quality standards, always striving to exceed expectations.

Short Regulatory overview:

– CRD/CRR regulation

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Basel III was developed by the Basel Committee on Banking Supervision in response to the global financial crisis. It is the biggest regulatory change that the banking industry has seen in decades. In 2011, the European Commission published proposals to implement the international standards on bank based on two legislative instruments: the Capital Requirements Regulation (the CRR) and the CRD IV Directive. The CRR contains provisions relating to the “single rule book�?, including the majority of the provisions relating to the Basel III prudential reforms while the CRD IV Directive introduces provisions concerning remuneration, enhanced governance and transparency and the introduction of buffers order to prevent future liquidity crises.

XBRL

European harmonisation of regulatory reporting requirements means firms are required to report the data to their competent authority. This means any firms affected by CRD IV will needs to convert their data into XBRL (eXtensible Business Reporting Language), which is based on XML (Extensible Markup Language). TheXBRL report needs to be validated against the taxonomy which has been issued by the European Banking Authority (EBA).

– CRS/Fatca regulation

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In July 2014, the OECD issued the Standard for Automatic Exchange of Financial Information in Tax Matters aimed at preventing offshore tax evasion and maintaining the integrity of tax systems. The Standard includes the Model Competent Authority Agreement (CAA), CRS and accompanying Commentaries . While CAA provides the international legal framework for the automatic exchange of CRS information , CRS sets out the financial account information to be exchanged, the scope of reporting financial institutions and reportable accounts, as well as due diligence procedures to be followed by reporting financial institutions.

More than 90 jurisdictions have already committed to the swift implementation of CRS

Who needs to report

CRS Reporting requirements are vastly different and more complicated than other models (i.e FATCA) as there are many more jurisdictions involved. However, the basics are: Identify if the entity is a reporting financial institution. The information being reporting must belong to an entity (legal persons or legal arrangements), the entity must be in a participating jurisdiction, the entity must be classified as a Financial Institution (FI), the entity must not be categorized as “non-reporting” by its tax jurisdiction.
Generally, reportable financial accounts to be reviewed are: depository accounts, custodial accounts, equity & debt instruments, & cash value insurance contracts and annuity contracts.

– Solvency II

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The Solvency II Directive (2009/138/EC) is an EU Directive that codifies and harmonises the EU insurance regulation. Primarily this concerns the amount of capital that EU insurance companies must hold to reduce the risk of insolvency. It encompasses all insurance and reinsurance firms with gross premium income exceeding €5m or gross technical provisions in excess of €25m HQ in EU and subsidiaries outside of the EU. It also applies to European subsidiaries of global insurance companies.