Supporting Compliance

Compliance officers need to report on existing regulations and want the ability to dynamically respond to new and evolving regulations at the national and state level, such as Basel II, MiFID, Reg NMS, KYC, and privacy. To achieve this, they need desktop access to reconciled and related data within and across customer, counterparty and financial instrument data domains.

Business Problems:

  • May be inaccurately measuring risk exposure to all counterparties based on holdings and positions on financial instruments.
  • May be over- or under-estimating capital reserve requirements based on inaccurate data.
  • Struggling to obtain an accurate picture of all clients, counterparties and financial instruments.
  • Difficulty accurately reporting on existing regulations and dynamically responding to new regulations.

Root Cause: The root cause of these business problems is data. Customer, counterparty and financial instrument data is created and updated by thousands of individuals in different lines of business and departments and stored separately in different formats in multiple systems across the institution. The inability to access reconciled and related data within domains and across domains makes it difficult to get a clear picture of complex financial instrument and counterparty hierarchies, and the even more complex relationships between them.

Business Impact of the Problem: Unfortunately, many compliance officers spend excessive time searching for and manually reconciling data rather than focusing on aligning their organization to comply with government and industry regulations. Moreover, because of inaccurate and disorganized data, they struggle to obtain an accurate view of customers, and have difficulty delineating the firm’s holdings and positions on financial instruments. They may not be 100 percent confident in their risk exposure measures, which may the institution to be out of compliance.

IT Problems:

  • Lack the ability to flexibly scale and quickly adapt to changing
    business needs.
  • Lack the time, resources and budget to ensure all data is reconciled and related within and across data domains in all systems across
    the institution.
  • Impeded by a non-scalable point-to-point integration environment and inflexible data stores.

Solution: Improve your ability to report on and dynamically respond to new regulations. Overcome challenges resulting from disparate data silos while maximizing investments in existing applications by implementing the proven and flexible Informatica MDM. Leverage reconciled and related financial reference data within and across domains that provides a clear view into:

  • Customer data
  • Hierarchies and relationships among all financial instruments
  • Hierarchies and relationships among all counterparties
  • Hierarchies and relationships between all financial instruments
    and counterparties
  • Current holdings and positions on each financial instrument

Results: Empower compliance officers to leverage reconciled and related financial reference data within and across domains in real time to:

  • Gain accurate views of customers.
  • Get a clear picture of current holdings and positions on financial instruments and associated counterparties.
  • Accurately measure risk exposure to all counterparties based on holdings and positions on financial instruments.
  • Optimize capital reserves.
  • Accurately report on existing regulations and dynamically respond
    to new regulations.

Find out how.