Changing regulationDue to a combination of events, the level of financial regulation has continued to increase, and it shows no sign of slowing down. In recent years we have seen the enactment of Sarbanes Oxley (SOX), Solvency II and IFRS 16 regulation. ESMA’s ESEF mandate is here already, albeit potentially delayed for a year in the UK. For publicly traded organisations, there are regulations set by the markets. While the impact on some sectors, such as financial services, is far greater than others, all organisations of any size encounter regulation, for example, HMRC’s iXBRL tagging and filing. What we do know is that penalties for non-compliance or error can be high, and it presents a high level of risk to many organisations. To mitigate against this, larger organisations have a dedicated compliance function, and even a Chief Compliance Officer (CCO). In others, responsibility for compliance inevitably falls onto the finance team.
The siloed approachMany organisations have taken a reactive and siloed approach to each new regulatory directive. Some have invested in a single purpose technology and developed processes for producing regulatory reports. Leasing solutions that address IFRS 16 are an example of this. Others have utilised outsourcing services. An excellent example of this is the ESEF service that is offered by technology provider Certent. “In the current climate, regulated businesses need a stepping-stone to meet compliance obligations without implementing an enterprise platform right away,” says Certent CEO Jorge Martin. “Our services team has more than 12 years of experience in regulatory reporting globally and are the same team that works with our Enterprise solution clients. This solution will provide our clients with guidance and peace of mind in dealing with the new regulations.” As the regulatory world never stands still, a siloed approach can result in a continuous change to tick the compliance box. However, you can derive little additional benefit and ROI is low.
GENCFO Deep Dive – How LV= achieves reporting excellence
In this interactive Deep Dive Live, we take a look at how LV=, one of the United Kingdom’s largest insurance companies, has been able to meet these challenges.
If you are looking to understand how to achieve reporting excellence and the role that technology play, this session is for you.
15 October, 2020 02:00 PM
This webinar is sponsored by Certent.