Global OTC derivative reform is challenging financial institutions across the world to rethink their abilities to achieve compliance in an efficient and coherent manner. In this paper, Charles Carter-Richards from FinReg and Andy Mantzios from Fenergo outline the enormity of the challenge facing financial institutions striving to comply with a patchwork of OTC derivative regulatory rules within tight regulatory schedules and with little harmonisation between regulatory regimes. The authors outline the many options and routes being undertaken by financial institutions from complying aggressively with the regulations, to non-compliance (either advertently or inadvertently), to deciding if compliance really is worth the business generated by derivatives. For institutions that have staked a claim in a global OTC derivatives business, the authors explain that while regulatory reform is the new cost of doing business in the derivatives markets, there are a number of technological, people and process elements that can be undertaken to make regulatory compliance with global frameworks efficient and business generative.
Meeting challenges around regulations with flexible data governance frameworks n the current financial landscape, an abundance of new regulation, as well as stricter enforcement of previously existing regulations, puts significant challenges in front of banks around compliance. In order to identify and strategize solutions around these issues, Fenergo assembled a panel of regulatory compliance experts, each with a successful history of managing various regulations and compliance processes. They each expressed their personal views on the largest challenges and opportunities in the space.
In this paper, Fenergo suggests that data and technology integration is the key to keeping pace with regulatory demands and supporting banks to ensure that they are delivering a consistent technology infrastructure for global regulation, the associated data and the end-to-end management of all client lifecycle events. We suggest that financial institutions need to review their operating models alongside their technology, data management and regulatory compliance strategies, capabilities and obligations in an effort to introduce greater cohesion and connectivity to the end-to-end process. In doing so, they can reduce the complexity of their internal IT and data management environments and find better ways to consume, process and distribute client and counterparty data and documentation to support regulatory compliance and client lifecycle management more efficiently.
Joe Dunphy, Fenergo’s VP Product Management, explores the role that KYC periodic reviews has to play in the levying of fines in this area and contends that the big problem with KYC is KYD (Know Your Data). With one Fenergo client estimating it can take up to 60,000 interactive hours to complete the KYC review process, it is plain to see that the traditional approach of applying brute force to the problem is mired in operational inefficiencies and escalating costs. Fenergo proposes a new approach to managing KYC periodic reviews
In this commissioned report conducted by Forrester Consulting, Fenergo measures the time, cost and challenges on onboarding complex, institutional clients. The report also explores a case study analysis of the benefits of implementing a Client Lifecycle Management solution.
In this paper, Fenergo calls for a review of the current process of capturing and storing client and counterparty data. Based on successful client implementations, Fenergo illustrates that up to 80% of all regulatory data and documentation required to comply with newer or enhanced regulations has already been collected under existing AML and KYC regulatory obligations. It proposes that by implementing a rules-driven approach to storing, indexing and re-using entity data and documentation on an enterprise-wide level, financial institutions can achieve faster regulatory compliance with multiple regulatory frameworks, more efficient onboarding and enhanced time to revenue.
Financial institutions have emerged from the rigorous regulatory and data demands of 2014 – battle weary and suffering a few scrapes and scars – but otherwise unscathed. On a whole, 2014 will be remembered as the year when regulators started to flex their muscles, levying a record number of fines and promising to become more involved at an earlier stage, making many financial institutions finally sit up and take notice. In this paper, we discuss what we expect for regulation in the Asia Pacific region for 2015.
Financial institutions have emerged from the rigorous regulatory and data demands of 2014 – battle weary and suffering a few scrapes and scars – but otherwise unscathed. On a whole, 2014 will be remembered as the year when regulators started to flex their muscles, levying a record number of fines and promising to become more involved at an earlier stage, making many financial institutions finally sit up and take notice. In this paper, we discuss what we expect for regulation in 2015.
In this paper, Joe Dunphy, Fenergo’s Head of Product Management, describes the perfect storm that is brewing in the world of financial services. Operating in a tumultuous regulatory environment, investment banks and capital market firms are trying to brace themselves against the onslaught of existing, enhanced and new regulatory requirements, each with regional variations and changing timeframes and scopes. This puts the strategic organizational objectives of the COO and CEO at odds with the tactical capabilities of the institution’s compliance, data management and onboarding teams.
Amid a tsunami of new and enhanced regulatory obligations, 2014 has witnessed a tidal wave of press releases announcing the launch of countless utilities emerging from the tumultuous seas of financial services. In this paper, Joe Dunphy, Head of Product Management with Fenergo, explores the benefits that such utilities can bring to financial institutions with particular respect to onboarding new legal entities or new products and accounts for existing legal entity clients. Additionally, he outlines the key players in the utilities space and explains how Fenergo’s suite of Regulatory Onboarding, Client & Counterparty Data Management and Client Lifecycle Management solutions integrate with these utilities.