Best Practices for Automating Regulatory Reporting

For years, financial institutions have been dealing with the cost and resource burdens of a highly regulated reporting environment. Regulatory reporting is a crucial task that requires extensive collaboration among risk, finance, and IT teams. But reporting procedures can be opaque, relying heavily on redundant manual processes.
At the same time, legacy systems make it difficult to perform the regular (often quarterly) adjustments required to comply with new and updated regulations. Of course, while it can be very labor-intensive to meet these changing demands, failure to do so risks severe fines and loss of trust with the public and regulators.
Automation can help solve this challenge, allowing financial institutions to be more proactive in a regulatory environment that is constantly in flux. A recent case study illustrates this, showing how the IVP Regulatory Reporting Solution enabled an asset manager to virtually eliminate manual intervention for Monetary Authority of Singapore (MAS) reporting, reducing it by 95%.
While implementing and maintaining an automated regulatory reporting solution can be a complex task, there are four best practices that help ensure success:
● Start with a comprehensive data management plan that includes a detailed understanding of the data sets involved, guaranteed data accuracy and completeness, and mechanisms for monitoring data quality.
● Invest in the right technology to ensure accurate and timely reporting. Ideally, a reporting solution should be specifically designed to meet regulatory requirements and have the integrations required to pull in data from fund admins, data vendors, and accounting engines, among others.
● Use strong data governance procedures to ensure compliance. This entails clearly defined roles and duties, rigorous policies and processes, and efficient risk controls.
● Routinely examine and update workflows to align with continuous regulatory change. This involves regular audits, identifying potential improvement areas, tracking regulatory updates, and making necessary adjustments.
With these best practices, firms use automation to improve efficiency and reduce risk while ensuring compliance. As the regulatory burden continues to increase, automation will help fund managers and regulatory teams simplify workflows and create opportunities for bigger alpha.

Learn more about the IVP Regulatory Reporting Solution or contact us at sales@ivp.in to schedule a demo.