A key tool of the regulator in supervising firms is the requirement of authorised firms to maintain the prescribed amount of regulatory capital in the appropriate component parts and to submit periodic returns in accordance with the regulations. Over the last decade, the regulator’s requirements have changed markedly to reflect the requirements of Basel III. The detailed requirements can be quite complex, and many firms have faced challenges in ensuring compliance with these prudential regulations.
The regulations typically cover the following areas:
- Calculation of the component elements of eligible capital resources
- Calculation of the component elements of requisite capital requirements
- Ensuring reports are properly prepared and submitted with the correct frequency
- Requirements as regards documentation, policies and procedures
- The relationship between risk and capital and ensuring the business has sufficient capital given the risks of its business model (IRAP and ICAAP processes)
- The risk of failing to complete, or inadequately completing, prudential returns can not only lead to routine fines but also alert the regulator to possible internal failures at the Firm.
How can CCL help?
CCL has been supporting firms with their Prudential and Regulatory Reporting obligations since 1988. Our team of consultants can assist you with the growing list of reports and returns that must be prepared and submitted to regulators including:
- Training on Regulatory Reporting requirements that would apply to you
- Preparation of financial returns in the prescribed formats to support applications
- Review of Quarterly and Annual prudential returns
- Preparation or review of Internal Risk Assessment Process (IRAP) reports
- Preparation or review of Internal Capital Adequacy Assessment Process (ICAAP) reports