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COREP Reporting Updates: Taxonomy 2.9
EBA Proposes new taxonomy 2.9 for COREP Reporting
3rd June 2019
Last week the European Banking Authority (EBA) published draft amendments to the Implementing Technical Standards (ITS) on supervisory reporting.
The amendments affected certain aspects of the Data Point Model (DPM) and XBRL taxonomy that affects COREP and Liquidity, as well as to resolution planning reporting.
The draft implementing technical standards will be submitted to the European Commission for endorsement before being published in the Official Journal of the European Union. Once published, the new requirements will be set to be implemented, in part, from December 2019 onwards.
The revisions under Taxonomy 2.9, will be applicable for first reporting reference dates of 31 March 2020 for COREP reporting changes, 30 April 2020 for changes relating to liquidity (LCR and ALMM) and for resolution planning, 31 December 2019.
In summary, the Amendments to the ITS include:
COREP: amendments to reflect the new securitisation framework;
Clarifications and corrections as regards reporting on COREP and additional liquidity monitoring metrics (ALMM); and
Liquidity Coverage Requirement (LCR): amendments in response to the LCR Delegated Act.
The significant changes to the European securitisation framework now call for a more fundamental change to the EBA COREP template to ensure reporting is aligned and produces the most efficient and effective way for data to be disseminated and as a result ensures that it can be used in a reliable way.
The current reporting framework, Taxonomy 2.8 was brought in in December last year for a transitional period of one year and was done so partly to help reflect the new securitisation framework that was introduced in January 2018. At the time, the EBA comments that COREP templates had to be “amended swiftly to allow at least the minimum level of information needed under the new framework to be reported”. Thus changes under taxonomy 2.8 saw additional rows being temporarily added, to COREP template C02.00 (which included those about basic information on the risk weight amounts for securitisation exposures under various new approaches). However, this additional information is not considered granular enough to get a complete picture of the entire revised securitisation framework and therefore further revisions are required to be introduced via newtaxonomy 2.9. For example, at present in taxonomy 2.8 there is no versus off-balance sheet information.
The proposed amendments to COREP include changing the reporting templates, in particular merging the SA and IRB templates (these being templates C 12.00 and C 13.00) in order to fully align them with the revised securitisation framework as well as changing the content of C 14.00 and C 19.00-C 20.00.
In addition, the EBA is looking to improve the level of information and granularity in the COREP templates (notably in templates C 12.00 to C 14.00) as well as remove the transitional rows in template C 02.00 that had been introduced in taxonomy 2.8.
As mentioned above, in addition to changes to COREP Reporting, the new EBA looks to revise Resolution Planning Reporting. The EBA has closely cooperated with the Single Resolution Board (SRB) with regard to reporting on resolution planning. Given this close co-operation, the new release of the DPM, taxonomy and validation rules includes such additional information as is required by the SRB beyond the minimum framework established in the EBA ITS on resolution reporting requirements since this has been deemed more practical for reporting firms. Such additional information includes, new information on critical functions and financial market infrastructures as well as amendments to the liabilities data reporting. It should be noted that the EBA informs that the SRB's additional requirements are part of the SRB's responsibility and therefore, queries and questions related to these should be taken up directly with them.
Common Reporting or COREP covers the capital requirements and own funds reporting based on Directives 2006/48/EC and 2006/49/EC.
COREP applies to investment firms and covers a variety of a firm’s operations all of which need to be reported to the UK Regulator - the Financial Conduct Authority (FCA). These items include own funds resources and requirements, large exposures and leverage.
COREP Reporting requires data to be reported quarterly to the FCA in a special format called XBRL which is uploaded to the FCA’s GABRIEL Reporting system.
Since the CRD IV Regulations were implemented in 2014, we have been heavily involved in assisting a variety of firms with their COREP reporting requirements and have therefore garnered significant experience in helping firms easily adopt the new reporting framework.
If you would like assistance with your firm’s requirements under CRD IV or with any of your regulatory reporting such as COREP, then get in touch or email firstname.lastname@example.org and we’d be happy to discuss how we can support you.
In addition, we offer a dedicated COREP Support website that provides a knowledge base for COREP Reporting as well as COREP support, COREP FAQs and a glossary of information for those firms that wish to find out more about Common Reporting Requirements.
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