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Will AnaCredit be another compliance epic?

Carl Needham
Carl Needham
Proposition Manager, Risk Managed Services

The new AnaCredit reporting rules are set for general release in Europe this autumn, but should financial institutions already be looking ahead to the sequel in terms of managing their legal entity data?

  1. The AnaCredit — analytical credit datasets — regulation requires banks to issue monthly reports on the status of their lending to legal entities.
  2. AnaCredit has been in the shadow of MiFID II, which means it may still be an issue for many firms prior to its implementation in September.
  3. We can assist with the legal entity counterparty reference dataset as required for AnaCredit.

Q. What do the film industry and financial regulators have in common?

A: They both love sequels.

Once each land on a winning concept, they like to return and explore broader themes and storylines integral to the original masterpiece.

Who isn’t familiar with the multitudinous volumes of film sequels from Jaws, The Matrix, Bourne, Star Wars, and so on?

Well, anything Hollywood can do, the prudential regulators can emulate, perhaps without the catchy titles though: Basel I, II, III; Solvency I, II; and the latest MiFID II.

Recently, I’ve been looking at the trailers for the latest up-coming release from the European Union, called AnaCredit.

This is a story of how the bank reporting function will have to submit new data on their customers at month end.

It has limited distribution rights, going only to the countries of the euro currency, though branch locations outside the EU will need to include the highlights — having to report on a subset of the data.

Tips for compliance

If you have not seen the trailer yet and you work in financial reporting, data management, or reporting compliance, you can get the brief.

I suggest you check it out because it goes live this September, and you will be expected to be compliant.

Here are a couple of suggestions on how to prepare:

  • Get to know your AnaCredit castAs well as all the debt instrument background, you need to know the exact legal entities involved with every debt and report on this counterparty, along with reports on its immediate parent entity, ultimate parent, debt servicer and protection provider (and possibly the protection provider’s parents, too).
  • Check you understand their finances: The size of your counterparty entity will need to be reported according to a matrix of thresholds from turnover, assets and employees, extracted from the latest accounts.

So if the first AnaCredit release is not out yet, what is the connection to regulatory sequels?

AnaCredit: You will need to report on...

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AnaCredit II?

AnaCredit has been two years in the making, but has been in the shadow of MiFID II, so I suspect many will be coming to AnaCredit for the first time when it goes on general release this autumn.

However, I’m sure the regulatory scriptwriters have not been idle and are already hatching the storyline for AnaCredit II, incorporating the expansion of debt values, and more lending institutions.

If you are a euro country domiciled bank (or branch), now is the time to get to grips with your part in the AnaCredit plot. You will undoubtedly have your client data to the granularity required.

We can assist with the legal entity counterparty reference dataset exactly as scripted for AnaCredit and any possible sequel!

Discover Verified Entity Data as a Service — accurate and maintained Legal entity data