CBI to strengthen XBRL and XML use amidst impending IFR/IFD
Keeping up with the pace of the regulatory reporting whirlwind
To say that regulatory reporting changes in the blink of an eye would be an exaggeration, but the pace is quickening, and it’s already a matter of months, not years. For the most part, most National Competent Authorities (NCA’s) have already begun to recognize the power of using open data standards (particularly XBRL) for reporting.
You might ask, why? Better data leads to better decisions, and in the simplest of terms, XBRL aids NCA’s in faster and more cost-effective comparison of financial information submitted by many reporting entities.
It’s getting hotter… and not just due to summer weather
At the end of last year, the Central Bank of Ireland (CBI) informed that it would be gradually making XBRL and XML mandatory for the remainder of reporting returns that are not yet submitted in XBRL/XML, particularly for MiFID and fund service providers. The move of certain reports is expected to take place in the third quarter of 2021, which is just around the corner.
To quote the CBI itself:
“Some of the returns submitted by your firm will gradually be phased out and replaced by more fit-for-purpose formats, such as XBRL and XML, which are commonly used by other National Competent Authorities and European Supervisory Authorities (a number of XBRL/XML return types are already being submitted to the Central Bank’s ONR system)”.
Counting the days to the new reporting regime for investment firms
The new prudential reporting regime for investment firms will finally be transposed into Irish law by 26th June 2021. The IFR/IFD framework introduces a tailored framework for investment firms, which will now be divided into class 1 (and will still fall under the remit of CRD IV/CRR) class 2 and class 3. The goal of the new framework is to provide investment firms with requirements (yes, reporting requirements also) that are more proportional for them, depending on their size.
All things considered, what is the current status?
- According to information available on the CBI’s website, the CBI requires MiFID investment firms to report under CRD IV taxonomy 2.9 or the relevant capital reports for non-CRD IV investment firms, for 30.06.2021 as scheduled.
- IFR reporting will commence for all class two investment firms on 30 September 2021 and for class 3 investment firms on 31 December 2021.
- From then on, class 2 and class 3 investment firms will be required to report on a quarterly (class 2) and annual (class 3) basis.
On the 10th of May, the EBA published the technical package containing the XBRL taxonomy, validation rules and Data Point Model (DPM) for its phase 1 of the 3.1 reporting framework, which also includes the new reporting requirements for investment firms.
Did this get your attention? Here’s what it means for reporting
The new reporting regime for investment firms will require investment firms to adopt new reporting systems in order to support the additional regulatory standards under IFR/IFD, convert the required data to XBRL and validate it against the relevant XBRL taxonomy as well as the filing rules.
As usual with regulatory reporting changes, there’s a lot to do in little time. With the 26th June deadline close, even more so. Luckily, there are expert tools that can come to the rescue and free you of cumbersome and time-consuming manual tasks and preparation of reports. And it just so happens that we have the ideal tool for you – ATOME Particles, created by regulatory data experts. And not only that, the IFR package is ready for testing in ATOME: Particles.
A short glance at what you can gain:
Sounds interesting?
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