Appeasing the regulators

Private Banks' increased requirements to meet regulatory and reporting standards has put an added burden on the industry

Regulation has become an integral part of the core issues that banks have to deal with, especially over the past few years as regulators impose more stringent reporting requirements, following the financial crisis. John Schaffer speaks with Ed Royan, COO EMEA at AxiomSL – a regulatory reporting and risk management company.

In March 2015, Swiss private bank Julius Baer chose AxiomSL to automate its group-level and Swiss entity Basel III calculations and reporting, as well as its group-level and Swiss entity statistical reporting. This was an extension of Julius Baer’s use of AxiomSL for financial reporting in Hong Kong and Singapore.

According to Royan, AxiomSL’s main differentiator is that the software solution is based upon one core platform, with regulatory applications being bolted-on to meet the requirements of each financial institution across different jurisdictions.

“We use the same platform across the globe. So the same platform that we use in Europe is the same platform that we use with our American clients and our APAC clients.

“The platform has been built up in a very strategic way and can do a lot of things such as ops reporting, tax reporting, financial reporting, regulatory reporting – so its quite dynamic in what it can offer.”

Royan adds that AxiomSL’s strength comes from a foundation in data management where the company is used to dealing with large volumes of data.

“If you look at regulatory reporting, a lot of it has to do with data.

“If you haven’t got your data right, then whatever you’re calculating and whatever you’re reporting isn’t going to be right either.”

As regulators increase their demands for data, Royan feels that AxiomSL’s system will allow banks to be in a “good position” with regulators. However, he adds that if banks have not invested in AxiomSL or an equivalent system, it could cause difficulty:

“Some banks are probably using a multitude of systems, querying different source systems and shoehorning their data into reporting templates.”