USE OF SOFTWARE AND TECHNOLOGY IN GLOBAL REPORTING
RC: Could you provide a general overview of the impact that global compliance is having on financial institutions, in terms of their software and technology provisions?
Thibodeau: The broadest impact is now requiring financial institutions (FIs) to combine and consolidate data from disparate systems to meet new regulatory requirements. The ‘identify’ phase of global reporting, when an FI identifies who is reportable based on the specific jurisdiction regulations, requires analysis with data from systems that are traditionally not connected. Consolidating the transactional and demographic information is required to analyse, filter and ultimately complete the reporting phase. FIs must also develop the ability to effectively manage and implement last minute development requests. Global compliance is so new that many specifications come out right before they are due or publish last minute changes. One recent example is India, which released its 2014 FATCA specifications on 28 August with a deadline of 10 September. The traditional 6-12 months that an FI needs to accommodate a development request simply does not fit. Additionally, FIs are now required to have a deep understanding of local data privacy laws and design their solutions to be compliant with the relevant rules. These laws can impact where data is allowed to be stored, analysed and ultimately reported.
RC: What are key considerations that financial institutions should consider when evaluating their technology options?
Oct-Dec 2015 Issue
Sovos Compliance