Financial Services Authority, UKIntegrated Regulatory Returns Programme

Presented by Lindsay ThomasDirector Knowledge Management

What I will cover today

• Background

• Our programme

• Timelines

• Lessons learnt so far

Background to the task

FSA has unified 9 legacy regulators:• 9 legacy reporting categories.• 43 different reporting forms.• 50 firm types.

Lots of duplication in regulatory data.

Drivers of change in reporting requirement

IRR

Need to better equip us to

meet statutory objectives

Adoption of risk based

approach to regulation

Greater focus on reporting

by what a firm does

Increase in number of

firms we regulateChanges

from EU Directives etc.,

Regulatory reporting – a new integrated approach

Reportingaligned to a firm’s year-end with standardised reporting frequencies& submissiontime limits

Firms to check annually that their Standing Data is correct

Mandatory electronic Reporting (MER)

Revised complaints data

1 2 3 4

Strategic IRR Programme

• Mandatory Electronic Reporting for all regulated firms

• Web forms AND system-to-system submission using XBRL

• Published taxonomy defining concepts and terms for regulatory reporting

• ‘De-duplication’ – firms submitting returns for more than one activity are only asked for each data set once (eg, balance sheet, currently appears in most returns)

• Plans for testing, pilots and training facilities

IRR reporting requirements

Reporting GroupsPublish

CP

PublishPS

Mortgage, GeneralInsurance & RetailInvestments Insurance: PublishedAnnual ReturnInvestment Activities (excluding retail investment activities)Deposit (& Principal Position) Taking

Sept ’03CP197

Sep ’03CP202

Jan ’05*CP

Jan ’05*CP

March ’04PS 04/09

Nov ’04

Aug ‘05

Aug ‘05*Currently planning to cover in the Strengthening Capital Standards Consultation Paper (CP)

Implementnew RR

April ‘05

Jan ’06

2007

2007

ComplaintsSep ’03 CP198

March ’04PS 04/08

April ‘05

MERfrom…

July ’05/

Jan ‘07

Jan ’07

TBC

TBC

July ‘05

Validation of the new project and timeline

• Major project shaping needs further refinement

• Report out in January 05

Information processes summary

ConnectConnectConnectConnect

• Web based Web based communicationscommunications

• Secure channelsSecure channels• Structured Structured

documentsdocuments• Connected Connected

directories & directories & databasesdatabases

• Web based Web based communicationscommunications

• Secure channelsSecure channels• Structured Structured

documentsdocuments• Connected Connected

directories & directories & databasesdatabases

• Browser based Browser based interfaceinterface

• XML XBRLXML XBRL• WorkflowWorkflow• Content Content

Management & Management & meta datameta data

• Browser based Browser based interfaceinterface

• XML XBRLXML XBRL• WorkflowWorkflow• Content Content

Management & Management & meta datameta data

CollectCollectCollectCollect

• Financial Financial returnsreturns

• On-line On-line authorisationauthorisation

• Transactional Transactional datadata

• Meta dataMeta data

• Financial Financial returnsreturns

• On-line On-line authorisationauthorisation

• Transactional Transactional datadata

• Meta dataMeta data

• KM DesktopKM Desktop• Tagging and Tagging and

auto-Categoriesauto-Categories• PersonalisationPersonalisation• Real-time Real-time

collaborationcollaboration• Enhanced meta Enhanced meta

datadata

• KM DesktopKM Desktop• Tagging and Tagging and

auto-Categoriesauto-Categories• PersonalisationPersonalisation• Real-time Real-time

collaborationcollaboration• Enhanced meta Enhanced meta

datadata

ActActActAct

• Risk AnalysisRisk Analysis• Timely Timely

decisions decisions • Intelligent Intelligent

automation and automation and trackingtracking

• informed informed enforcementenforcement

• Risk AnalysisRisk Analysis• Timely Timely

decisions decisions • Intelligent Intelligent

automation and automation and trackingtracking

• informed informed enforcementenforcement

• Integrated Integrated systemssystems

• Risk Risk assessmentassessment

• Decision Decision support toolssupport tools

• Case Case management management

• Integrated Integrated systemssystems

• Risk Risk assessmentassessment

• Decision Decision support toolssupport tools

• Case Case management management

Featu

res

Featu

res

Tools

Tools

GrowGrowGrowGrow

• ““The Learning The Learning Organisation”Organisation”

• Intelligent, Intelligent, learning learning systemssystems

• Responsive & Responsive & adaptable adaptable workforceworkforce

• ““The Learning The Learning Organisation”Organisation”

• Intelligent, Intelligent, learning learning systemssystems

• Responsive & Responsive & adaptable adaptable workforceworkforce

• Intuitive support Intuitive support applicationsapplications

• Adaptive to Adaptive to individual individual profilesprofiles

• Seamless part Seamless part of work processof work process

• Intuitive support Intuitive support applicationsapplications

• Adaptive to Adaptive to individual individual profilesprofiles

• Seamless part Seamless part of work processof work process

17 of 19

Major industry infrastructure programmes

The need:

– Honesty

– Transparency

– Trust

– Delivery

– Outcomes

Lessons I have already learnt

There are three key things different about this programme

– Manage the clash of interests

– Setting data standards

– See the wider emerging pan European and global financial services agenda

Clash of interests

• Excitement of new ideas

• Investment by software providers

• Reporting firms

• Change management

The importance of standards

• Regulators are standard setting bodies

• Too little appreciation of data

• Co-operating on industry taxonomies

• Providing the basis for agreement

• Expanding the consensus

Wider changes

• Basel 2• Financial Services Action Plan• IFRS• MiFiD (ISD2)• CESR/CIOPS/CEBS• Convergence of national statistics, tax,

accounting and reporting data standards

Conclusions

• Be careful

• Be very careful this is an industry infrastructure programme

• Don’t get carried away but be ambitious

• Further information– www.fsa.gov.uk/regulatory_reporting– returns@fsa.gov.uk