A Regulatory Reporting Hub in Luxembourg?

ABBL Published 13.11.2017

On 21 September 2017, the ABBL held the conference “Regulatory Reporting Hub: Challenges and Opportunities for Luxembourg” with the purpose to share the Austrian experience on establishing a national regulatory reporting hub and to trigger the discussion on whether Luxembourg could follow the same approach.

In total, more than 110 participants attended the event indicating a high interest to the topic.

Seven Austrian banks founded Austrian Reporting Services (AuRep) in 2014. Nowadays, the platform represents more than 90% of the banking market.

Mr TURNER and Mr SEDLACEK (both from the Austrian National Bank – ANB) highlighted the key components of the efficient national reporting processes implemented in Austria:

  • Data are processed on a shared platform
  • Reporting model and transformations are defined jointly with the banking industry and service providers
  • Possibility of multi-use of regulatory reporting data

Integrated regulatory reporting processes represent a paradigm shift in banking supervision and statistical data remittance. It requires on all sides (the European Central Bank, national competent authorities and banks) a rethinking of data processing and quality assurance. Such approach fosters two-way understanding and transparency of reporting processes leading to a higher data quality, less redundant data deliveries, higher flexibility and lower costs.

Marc HEMMERLING shared key suggestions resulting from a reflection paper developed by the XBRL Luxembourg Association (established in 2007). The need for further discussions with authorities and stakeholders is evident. In case of the consensus on establishing a reporting hub, the XBRL Luxembourg could be replaced by an Open Reporting Platform and would prepare the implementation project.

The panel discussion moderated by Gilles PIERRE (ABBL) included Roland NOCKELS (BCL), Emile BARTOLÉ (CSSF), Bernard SIMON (BdL) and ANB representatives. The experience with a reporting platform for Luxembourg’s fund industry underlined several aspects: the cross-border nature of business, open architecture and the growing number of reports to be submitted to other jurisdictions. An entity providing shared regulatory reporting services has to be supervised by the CSSF. The confidentiality of the data has to be an absolute priority. The law to which such a company should comply with – the public law or the private law – is the cornerstone in this regard. The data need to be encrypted with sophisticated methods at the level of the client and decrypted at the level of the supervisor.

The ABBL has launched a survey among all participants of the conference to understand the degree of interest towards establishing a shared regulatory reporting hub in Luxembourg.

 

By Andrey Martovoy, FinTech Adviser – ABBL