European Markets Infrastructure Regulation (EMIR)

Transcription

1 European Markets Infrastructure Regulation (EMIR) Health Check for Financial Services firms AIFM tax solutions 1 Kinetic Partners 1

2 EMIR reporting Health Check As international regulators continue their focus on the post-trade derivatives landscape, it is increasingly challenging for firms to keep pace with the complex regulatory and operational requirements. With EMIR Trade Reporting effective from 12 February 2014, firms must have a solid foundation and processes in place that complies with new reporting obligations, is in-line with industry best practice and considers forthcoming requirements such as backloading. It is vital therefore for firms to understand and analyse EMIR in relation to: your firm s business model the reporting requirements and various timelines your systems and controls your policies and procedures Important areas of focus In order to best equip your firm for EMIR reporting, Kinetic Partners has identified several key questions that we ask firms and their leadership as they seek to meet their EMIR reporting obligations. 1. Does your firm have oversight, controls and documentation in place for monitoring the data integrity of trade reports? 2. Does your firm have the available resources to deal with exception handling and forthcoming regulatory requirements? 3. Have you performed front to back testing on your data and reporting systems? 4. Have you clearly defined team roles and operational obligations? 5. Have you conducted a gap analysis? Benefits of a Health Check Having and implementing a project plan which considers resources, EMIR requirements and architecture build is vital for firms looking to integrate EMIR requirements into their existing transaction and trade reporting processes. Build foundations for an effective EMIR compliant process Improve senior management oversight and mitigate potential risk exposure Identify strengths and weaknesses within your existing arrangements Establish change management procedures Robust framework for EMIR Trade Reporting About Kinetic Partners Kinetic Partners is an award winning global professional services firm focused exclusively on the financial services industry. We offer a full range of consulting, compliance, due diligence, tax, forensic, risk and audit and assurance services to clients who value our expert service, delivery and unique approach. The team of EMIR specialists has over 20 years of experience working at the FSA s Transaction Monitoring Unit, and includes expert industry practitioners and qualified audit staff who have extensive experience with transaction and trade reporting projects. Kinetic Partners 2

3 Delegated Reporting Self-reporting EMIR Health Check: key areas Kinetic Partners is highly engaged with industry and trade associations to ensure we are at the heart of EMIR communications, and as such we have devised several key areas for firms to target during a Health Check in order to drive the most appropriate outcomes for all stakeholders. In leveraging our transaction and trade reporting expertise and specialised knowledge, we have pulled together the following list of action items that we run through with firms when conducting EMIR Health Checks on their behalf Checking your understanding of the impact of EMIR on your business model Assessing your understanding of which instruments are in scope Assessing whether you have oversight and controls in place for: Reconciliation Exception handling Static data Management Information Training High level review of your Policy and Procedures. Sanity check on your data fields interpretation and mappings Sanity check a sample of transactions based on your key scenarios Checking your understanding of the impact of EMIR on your business model Assessing your understanding of which instruments are in scope Assessing whether you have oversight, controls and documentation in place for monitoring the data integrity of your trade reports 4 Sanity check a sample of transactions based on your key scenarios How we can help Building on our extensive regulatory and operational experience with MiFID trade and transaction reporting, we are naturally extending our services to EMIR trade reporting. We are offering an EMIR Reporting Health Check service from 5000 to help clients gain assurance that they have adopted a reasonable implementation approach and walk them through the key items they need to examine in their organisation. Please contact one of our EMIR specialists listed on the next page to find out more about how Kinetic Partners can help you. Kinetic Partners 3

4 Contact us Member, Global Head of Consulting Monique Melis e: t: Director, Markets Simon Appleton E: t: m: Director, Markets Zachary Johnson e: zachary.johnson@kinetic-partners.com t: m: Associate Director, Markets Judy Leung e: judy.leung@kinetic-partners.com t: Associate Director, Markets Tammy Li e: tammy.li@kinetic-partners.com t: Associate Director, Reg Compliance (Buy-side) Greg Worsfold e: greg.worsfold@kinetic-partners.com t: Kinetic Partners 4

5 Disclaimer: This publication is for informational purposes only, and none of Kinetic Partners or its related entities (collectively Kinetic Partners ) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity within Kinetic Partners shall be responsible for any loss whatsoever sustained by any person who relies on this publication. Kinetic Partners 5