For many firms, the only contact that you may have with the regulator during the year is by submitting various reports. This means understanding what you have to report, when and how, is critical to avoiding any unwanted attention.

Errors on your Pillar 1 capital calculations can influence the regulator’s perception of your firms’ culture of governance and control. During SREP reviews, we are seeing significant capital add-ons depending on the materiality of the errors. At worst, if the regulator has serious concerns on the control environment, it can commission a Section 166 review which is costly and time consuming for any firm affected.

It is better to carry out remediation work now and pre-empt the regulator than get to this point. We regularly see errors in Pillar 1 calculations even when an automated solution for capital reporting has been used. If you don’t have the skills or resources to review or challenge results, the calculations may not be correct.

We are on the regulator’s Skilled Persons panel for prudential matters and recently carried out a S166 review on COREP reporting for the PRA so we know what the regulator is expecting to see.

Capital planning

We help firms review their capital requirements and can assist with capital planning arising from changes in your business, takeovers or re-structuring your balance sheet. If you need to issue more Tier 1 or Tier 2 capital we can assist with the application to the regulator.

Capital and liquidity reporting

Reporting is not getting any easier with new reporting requirements being regularly introduced. We have a team of experts with accounting backgrounds who have the experience to help all financial service firms fulfil their reporting obligations and have the skills and software to make reporting as painless as possible. At a simple level, we can help prepare and submit all of your regulatory returns, both financial and non-financial (for example, close links and controllers reports).

The key reporting areas we deal with are:

Gabriel Returns

We can do as little or as much as you need, from preparing all your Gabriel returns or performing an annual health check.

COREP reports

Banks and CRD IV investment firms have to submit various returns called Common Reporting (COREP). Depending on size and complexity, firms need to submit capital, large exposures, unencumbered asset and liquidity returns. Each of these contains several schedules and needs to be submitted in XBRL. We can prepare these returns either from scratch or perform a review of your calculations before converting to XBRL using our specialist software.

AIFMD Annex IV reporting

Alternative Investment Fund Managers (AIFM) which are managing or marketing Alternative Investment Funds (AIF) into the European Union or EEA have to complete AIFMD Annex IV reports. The size of the AIFM determines what the reporting requirements are and the frequency. The AIFM has a responsibility to file information on itself as well the AIFs.

The reports have to be filed using Gabriel in XML format. We can advise you on completion of the reports and have software to make the submission process as painless as possible. For those who need to report to other jurisdictions or who have lots of AIFs, we have software to automate the process.

 

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