Financial Services Authority, UK Integrated Regulatory Returns Programme

1. Financial Services Authority, UKIntegrated Regulatory Returns Programme Presented by Lindsay Thomas Director Knowledge Management

2. What I will cover today • Background • Our programme • Timelines • Lessons learnt so far

3. Background to the task FSA has unified 9 legacy regulators: • 9 legacy reporting categories. • 43 different reporting forms. • 50 firm types. Lots of duplication in regulatory data.

4. Need to better equip us tomeet statutory objectives Adoption of risk based approach to regulation Drivers of change in reporting requirement IRR Greater focus on reporting by what a firm does Increase in number of firms we regulate Changes from EU Directives etc.,

5. Regulatory reporting – a new integrated approach 1 2 3 4 Reporting aligned to a firm’s year- end with standardised reporting frequencies & submission time limits Firms to check annually that their Standing Data is correct Mandatory electronic Reporting (MER) Revised complaints data

6. Strategic IRR Programme • Mandatory Electronic Reporting for all regulated firms • Web forms AND system-to-system submission using XBRL • Published taxonomy defining concepts and terms for regulatory reporting • ‘De-duplication’ – firms submitting returns for more than one activity are only asked for each data set once (eg, balance sheet, currently appears in most returns) • Plans for testing, pilots and training facilities

7. Reporting Groups PublishCP Publish PS Implement new RR MER from… IRR reporting requirements Complaints Sep ’03 CP198 March ’04PS 04/08 April ‘05 July ‘05 Mortgage, GeneralInsurance & RetailInvestments Sept ’03CP197 March ’04PS 04/09 April ‘05 July ’05/ Jan ‘07 Insurance: PublishedAnnual Return Sep ’03CP202 Nov ’04 Jan ’06 Jan ’07 Investment Activities (excluding retail investment activities) Jan ’05*CP Aug ‘05 2007 TBC Jan ’05*CP Deposit (& Principal Position) Taking Aug ‘05 2007 TBC *Currently planning to cover in the Strengthening Capital Standards Consultation Paper (CP)

8. Validation of the new project and timeline • Major project shaping needs further refinement • Report out in January 05

9. 17 of 19 Connect Collect Act Grow • Web based communications • Secure channels • Structured documents • Connected directories & databases • Financial returns • On-line authorisation • Transactional data • Meta data • Risk Analysis • Timely decisions • Intelligent automation and tracking • informed enforcement • “The Learning Organisation” • Intelligent, learning systems • Responsive & adaptable workforce Features • Browser based interface • XML XBRL • Workflow • Content Management & meta data • KM Desktop • Tagging and auto-Categories • Personalisation • Real-time collaboration • Enhanced meta data • Integrated systems • Risk assessment • Decision support tools • Case management • Intuitive support applications • Adaptive to individual profiles • Seamless part of work process Tools Information processes summary

10. Major industry infrastructure programmes The need: • Honesty • Transparency • Trust • Delivery • Outcomes

11. Lessons I have already learnt There are three key things different about this programme • Manage the clash of interests • Setting data standards • See the wider emerging pan European and global financial services agenda

12. Clash of interests • Excitement of new ideas • Investment by software providers • Reporting firms • Change management

13. The importance of standards • Regulators are standard setting bodies • Too little appreciation of data • Co-operating on industry taxonomies • Providing the basis for agreement • Expanding the consensus

14. Wider changes • Basel 2 • Financial Services Action Plan • IFRS • MiFiD (ISD2) • CESR/CIOPS/CEBS • Convergence of national statistics, tax, accounting and reporting data standards

15. Conclusions • Be careful • Be very careful this is an industry infrastructure programme • Don’t get carried away but be ambitious • Further information • www.fsa.gov.uk/regulatory_reporting • returns@fsa.gov.uk