Reporting

CRR/CRD Client Reporting

From Asset Managers for Banks.

Capital investment reporting in accordance with CRR/CRD sets requirements for institutional transactions by asset managers. What does IDS CRR/CRD Client Reporting offer asset managers:

  • Reducing the loss of mandates as a result of secure fulfilment of the regulatory reporting requirements arising for banks (the Pillar I - equity requirements) 

  • Customer loyalty by creating transparency in the capital investments, which reduces the capital requirements of the banks

  • Satisfied clients as a result of optional support for investors in risk management by providing risk analysis (in accordance with Pillar II - Bank supervision review process)

  • Savings due to the determination of asset classes in accordance with the credit risk standardized approach (CRSA) through IDS

A complete, consistent, and quality-assured database and the detailed knowledge of the regulatory requirements of the clients are essential factors for the success of high-value client reporting.

The processing of the necessary information and reports requires detailed knowledge of regulatory requirements and places high demands on the quality of the underlying data: Each individual item in the capital investments must be supplemented with extensive investment master data, with company data about the issuer or counterparty, and their highest parent company globally, as well as information on creditworthiness. The data maintained in different source systems must be transferred to all investments in a format that is uniform in terms of technology and content.

Managed Service for CRR/CRD

With the capital investment reporting managed service in accordance with CRR/CRD from IDS GmbH - Analysis and Reporting Services (IDS), asset managers provide the client reporting required by banks. The client decides whether to deliver the required data in full or meet only the minimum data requirements, and allows IDS to add some parts. IDS provides the required consistent, complete, and quality-assured data basis and creates all of the required reports in the specified formats based on tried and tested processes that are subject to ongoing review.

By using the CRR/CRD solution from IDS, asset managers can respond flexibly to requests from their clients, reduce costs, and quickly demonstrate delivery capacity to investors in the banking sector as a result of the short implementation time; they do this by relying on the systems, processes and expertise of IDS.

Features

Data Management und Data Governance

  • Collection of the data required for CRR/CRD from different source systems and in any format
  • Creation of the complete, consistent, and quality-assured data basis required for CRR/CRD relating to all direct holdings and fund portfolios through to IDS data governance (see process flowchart) such as:
     - Data standardization and enrichment
     - Assignment of regulatory asset classes to the individual positions
     - Decomposition of complex or composite investments for risk analysis in accordance with Pillar II
     - Computation of the key figures required for the service (solvency capital requirements, CVA, deduction positions from equity by capital type and other data)
     - Full coverage of investments
  • Complete review of target funds for the GroMiKV report on the availability of the required holding information
  • The highest standards of IT security and process quality

Analytical Functions

  • Calculation of contributions to the solvency capital requirement from credit risk in accordance with the credit risk standardized approach (CRSA) and an internal ratings-based approach (IRBA) on the basis of the simplified review or the BaFin T038 interpretation

  • Calculation of the credit risk exposures for each borrower unit (Ultimate Parent) for reporting in accordance with GroMiKV (Regulation Governing Large Exposures and Loans of EUR 1.5 Million or More)

  • Calculation of the price risk on OTC derivatives without a central counterparty (Central Counter Party - CCP) within the meaning of the EU Regulation EMIR ( European Market Infrastructure Regulation ) on the basis of credit worthiness changes in the counter party (Credit Valuation Adjustment - CVA)

  • Determining the deductible positions from own funds for each equity type for investments in companies in the financial sector

Reporting

  • Production of the reports required by the investors for the fulfillment of their reporting obligations to the supervisory authorities (upon request on a monthly or quarterly basis)
  • Using industry-standard reporting standards such as the security notifications reporting form - for the positions to be deducted from equity and the BVI standard for reporting under the German Large Exposures Regulation

 

Additonal IDS Service: Risk Analysis in Accordance with Pillar II

Calculation of the risk indicators required in accordance with Pillar II such as Value at Risk (VaR), undiversified VaR, long-term VaR, historical stress tests, hypothetical stress tests, stress tests according to industry standards such as DGRV scenarios (Deutscher Genossenschaftsund Raiffeisenverband e. V. - German Cooperative and Raiffeisen Confederation - reg. assoc.), serious economic scenario

 

IDS capital investment reporting in acordance with CRR/CRD is a professional and technically optimized solution for asset managers.


Advantages

CRR/CRD Specialist Knowledge

The detailed CRR/CRD product knowledge of IDS experts in the preparation of reports, the ongoing monitoring of the legal requirements and the interpretation of the analysis results makes it possible to:

  • Avoidance of capacity shortfalls

  • Achieve a high level of investor satisfaction (banks) through quality-assured and prompt reports that meet the regulatory requirements

Operational Solution from IDS

Through the use of an optimized, tried and tested CRR/CRD solution:

  • A high level of flexibility in data collection and enhancement and rapid availability of the reports required by banks

  • Cost savings as a result of the identification of the exposure classes in accordance with the credit risk standardized approach (CRSA) by IDS

  • Reducing complexity by utilizing the appropriate option in each case for the asset manager in terms of the format and breadth of the data to be provided

IDS Infrastructure and Data Governance

Access to the IDS infrastructure, which has been in successful operation for more than 10 years and is under continual development, to meet the data requirements of internationally active asset managers and sound IDS expertise in the areas of data management and data governance provides: 

  • Creation of the complete, consistent, and quality-assured data basis required for CRR/CRD across all direct holdings and fund portfolios as a basis for quality-assured client reporting 

  • Extension of the industry-standard CRR/CRD reporting in accordance with Pillar I regarding the risk analysis in accordance with Pillar II (Internal Capital Adequacy Assessment Process - ICAAP/Minimum Requirements for Risk Management - MaRisk), i. e. undiversified VaR, long-term VaR, stress tests, serious economic scenario

  • Potential expansion to include services for other groups of institutional investors, such as reporting relevant to insurance companies in accordance with Solvency II or performance attribution - resulting in a high level of coverage of client reporting requirements from a single source

Functionalities

  • Support for all interfaces required for the importing of position and market data
  • Continual quality assessment of portfolio, holding and instrument data received
  • Monitoring of incoming data and implementation of quality control measures in conjunction with the relevant data owner
  • Standardization of data and symbols received via the delivery systems
  • Identification and standardization of identical content on instruments and companies received in technically diverse formats
  • Enrichment of position data with all required static data, indicators and sector information, including decomposition of complex instruments and assignment to receivables classes
  • Complete review of target funds for the Regulation Governing Large Exposures report if the required holding information is available - Documented audit trail for delivered data
  • Operation of the IT infrastructure and processes according to the standards of an international financial services company
  • Creating industry-standard reports for funds and direct holdings reports
  • Calculation and expression of the results at the level of portfolios
  • Adaptation of the report layout to the corporate design of the asset manager

 

 

 

 

CRR/CRD Client Reporting

IDS Data Management / IDS Data Governance Processes

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