Case Study 1 Regulatory Reporting
Regulatory Reporting:
Client: Leading Investment Bank
Client Challenge: Implementation of T+2 for 2052A Regulatory Reporting
The client asked Charles Alan to provide advisory support for the Tplsu2 project, which seeks to implement changes to its 2052a reporting so that it can be produced on a daily T+2 basis. Additionally, the 2052a report would have to be implemented to comply with Category III 2052a reporting requirements as outlined by Reg YY. The project focused on completing the testing of implemented initiatives.
Following the initial review of current process, the Client asked Charles Alan to implement a comprehensive transformation of the Bank’s regulatory reporting function, including the establishment of a control framework, development of governance and accountability disciplines (across data and processes), and the automation of the regulatory reporting process.
Our Approach:
- Identified a Programme lead for the multi-year initiative.
- Interpreted Fed guidance for FR2052a Inflow/Outflow and Supplemental tables and provide solutions to the client for any gaps in reporting.
- Developed Proof of Concept for Liquidity reporting methodology to ensure consistent reporting of FR2052a transactional level data to US Federal Reserve
- Worked with stakeholders in Treasury, Audit and Liquidity Risk to remediate and resolve any MRA/MRIA’s aka Matter Requiring Attention/Immediate Attention raised by US Federal Reserve related to Liquidity Reporting
- Created solutions with Technology & Operations teams to streamline variance analysis and commentary processes for FR2052a LCR/NSFR submissions.
- Created end to end Business Requirements Document for reporting missing transactional data related to Failed Settlements under Inflow-Assets & Outflow-Secured tables.
- Assisted in testing & reconciling end to end transactional flow across various internal systems to ensure consistent reporting which matches firm’s books & records
- Assisted the Liquidity Measurement & Reporting team in ensuring that appropriate variance checks are in place for daily T+2 reporting and LCR/NSFR XML submissions on a T+15 basis.
- Assisted financial reporting teams within the organization to ensure appropriate validation & control checks are in place to reconcile & align regulatory reports v/s financial reporting data.
Outcome & Results:
Successfully accelerated the delivery within a 9-month timeframe to remediate numerous MRAs with the implementation of new and enhanced controls and processes, new attestations, and system implementations, covering both vendor and in-house developed.
Enhanced and automate regulatory reporting processes using new technologies/platforms including Axiom, Wdesk, Alteryx, Qliksense thereby eliminating/reducing manual adjustments.
Automated control checks and strengthen existing rules & procedures across the liquidity reporting stack to ensure minimal error rate in regulatory submissions.
