On 7 November, the EC published the results of a fitness check of supervisory reporting requirements in EU financial services legislation.
According to the results:
- The supervisory reporting rules, in place since the financial crisis, have been effective in delivering the necessary data.
- However, reporting is not as efficient as it could be, with inconsistencies between reporting rules, which do not only increase the administrative burden for financial institutions and other market participants but also reduce the quality and usability of the data for supervisors.
- Additionally, the recent trend towards data-driven supervision and advances in big data technologies will require more high-quality and granular data going forward.
- Targeted improvements are already under way – and in some cases have already been completed – as part of sectoral reviews of EU legislation and other initiatives.
- There is a need for a comprehensive approach by the EC, together with the relevant stakeholders, to further streamline the requirements and develop supervisory reporting that is fit for the future
- This will require improvements in different areas, including: the legislative process for setting reporting rules; the review and justification of the data needs and uses by supervisors; consistency and harmonisation, including common terminology, data standards, formats and identifiers; governance, coordination and cooperation between the authorities, also when it comes to data re-use and data sharing; and the use of technological solutions for regulation and supervision.