Many regulatory changes expected again in 2023

It can hardly have escaped anyone’s notice; the amount of directives and regulations that have poured over the financial sector in recent years. According to the Financial Times, there are now more than eighty of them, and that’s not all! (FT, December 2021). If we take a look at the joint 2023 priority list of the European Commission, European Council and European Parliament, we see there the necessary adjustments to existing regulations such as “The banking package,” MiFid2, MiFIR, AIMFD, EMIR etc. but also several new initiatives such as European Single Access Point (ESAP), Open Finance Framework, MiCa and DORA. In addition, further rollout of SFDR and the CSRD is also planned for the next few years. If you are already dizzy, this is just a selection. Regulation and reporting go hand in hand. For regulatory compliance monitoring or as part of specific regulations, financial institutions and companies must submit occasional and periodic reports to the various regulators. That puts quite a strain on financial institutions despite all the underlying good intentions.

Research by the European Banking Authority (EBA, 2021) shows that this pressure is mainly caused by the following four factors: the complexity of the matter, the amount of data, the availability and accessibility of the (own) internal data and the stability of the reporting framework. The latter refers to the ever-changing requirements that reports must meet. Addition Knowledge House, together with DEX Data Explorers, has developed a solution in the form of DEX Regulatory Suite that overcomes the bottlenecks described above. A characteristic of DEX Regulatory Suite is that the reporting definitions in the database are defined by means of so-called Data Point Models. These Data Point Models are either defined by the regulator or developed by DEX Data Explorers based on the regulator’s specifications.

Based on the financial institution’s specific reporting requirements, the client can choose a particular reporting set. The DEX Data Explorers website (see https://dataexplore rs.nl/regulatory-suite/) describes the various reporting sets (also called taxonomies). New taxonomies can also be developed upon request. Our expertise in reporting and data modeling allows us to respond quickly to client needs and requirements. DEX Data Explorers monitors the development of the various report sets and ensures that in the event of change, a new version of the taxonomy is available to the client in a timely manner. Changes in regulations, directives and technical standards are reflected in the Data Point Models. Reading in the new Data Point Model ensures that all reporting formats are up to date again. This removes the problem of ever-changing requirements and implementation updates due to changing regulations.

DEX Regulatory Suite supports the entire reporting process; from unlocking and organizing the internal source data to delivering the final report to the regulator. The Data Point Models include the validation rules defined by the supervisor. This allows the applicable validation rules to be reviewed internally so that the data is delivered correctly to the regulator. In this way, the reporting institution remains in control of the quality of the delivery. The report can be delivered in various formats desired by the supervisor: Excel, CSV, XML, XBRL, etc. The encryption required in some report sets is also supported by DEX Regulatory Suite. In addition to external reporting purposes, DEX Regulatory Suite is also suitable for increasing insight within the organization.

Based on the loaded data, user-friendly MIS Dashboards can be developed. In the spirit of we can’t make it more fun but we can make it easier, ChatGPT has recently been integrated into DEX Regulatory Suite. Through this AI chatbot, quick clarification of certain references, definitions and key terms can be obtained. From Addition Knowledge House, the entire implementation process can be supported but it is also possible to completely outsource the reporting process to Addition Knowledge House. Want to know more about DEX Regulator Suite? We are happy to come by and explain the various functionalities based on a demo.