Financial services data managers are more focused on the specificity of data than ever before. According to a Waters Technology report, this is due to the increasing importance of data specificity in supporting multiple data governance and compliance functions. There is also an added importance on numerous data governance and compliance functions as Solvency II, MiFID II, MiFiR, BCBS 239, Basel III, EMIR and other regulations are on the verge of reaching their implementation in EU nations.
“Financial services data managers are now more focused on the specificity of data than ever before.”
Data specificity necessary for compliance and governance efforts
With Solvency II set to hit the industry on Jan. 1, data managers across all financial services sectors wonder what the impact will be on how insurance companies manage their capital and their data. One of the main points of attention now will be on asset managers serving the €8.5 trillion insurance sector, because they will now be called upon to both maximize returns and grow assets while ensuring the accuracy of their balance sheets submitted to Solvency II regulators. While the changes may cause issues for asset managers who cannot provide enough data transparency within established timelines, it may also be good for asset managers as they intensify their search for common ground data to ensure compliance with all Solvency II rules.
In this way, Solvency II may actually be an opportunity for asset management firms. According to a Waters Technology interview with Stephane Malrait, Global Head of Financial Markets eCommerce at ING, in the search for common data, asset managers may extract more value from existing data.
“In other industries, the value of the company is driven based on the data they have,” Malrait explained. “They don’t see data as a cost. They see it as a revenue center. The financial industry is starting to slowly move toward that.”
The growing need to reconcile data from multiple sources
Another common issue related to data specificity faced by data governance specialists is in reconciling data from multiple sources. This could become an important aspect of obtaining and managing common data. It will be a requirement for firms to get granular-level data specificity in their searches if they intend to apply this common data in compliance efforts.
Unifying governance, risk and compliance efforts
Many Risk executives throughout the EU, and most likely around the world soon enough, have and will continue to realize the need to manage qualitative and complex data as regulatory changes loom. Many firms are now integrating unified governance, risk and compliance plans with stringent audit and data collection schedules. However, one of the main issues in implementing these plans is a fundamental philosophical difference: many companies are working toward integrating data to align with their goals, but they should focus on how to improve the quality of their data.
- Navigating Fixed Income Analytics in a POINTless World
- MAR Update – Regulatory Oversight is on the Rise
- Ensuring Regulatory Compliance Includes Detecting Questionable Order Activity
- Ask the Expert: FIGI I.D. Mapping Across Multiple Asset Classes
- More Time Required Before Phasing Out of Key Reference Rates