Leveraging Microsoft Technologies for Regulatory Compliance


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The regulatory burden for Channel Island businesses continues to grow. Forward looking businesses are using these requirements as an opportunity to revamp their systems to provide platforms for growth.

C5 Alliance work with a number of progressive clients, financial and regulatory, to implement scalable, extendible platforms. These platforms deliver Self-Service management information and regulatory returns from the same dataset. Workflow allows compliance and regulatory checks to be data driven, exception-based, targeted activities rather than a calendar based spreadsheet audit of all data. Teams can work effectively across jurisdictions safely capturing relevant information and decisions for current information and future regulatory justification.

Our solutions provide the following outputs;
FSA liquidity reporting
JFSC prudential returns
Solvency II
USA FATCA (UK FATCA to follow once the regulations are published)
Jersey & Isle of Man Behavioural Adjustment

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Leveraging Microsoft Technologies for Regulatory Compliance

  1. 1. C5 Alliance Group Limited Simplifying Regulatory Reporting using Microsoft Platforms Dan Hare Director, Head of Business Intelligence Aonghus Fraser Head of Process & Platforms Our Mission
  2. 2.    Agenda Regulatory Reporting background  Demonstrations using latest versions of platforms   Future A platform-based strategy Adding value via Regulatory Reporting projects Q&A
  3. 3. Experience   Over 7,000 Business Solution projects delivered 120 IT Services contracts maintained Infrastructure Our Credentials    170+ staff across the Channel Islands First, second and third line levels of support 24x7x365 Business Continuity , Hosting and Hybrid Clouds Qualifications    ITIL V3-based operations & procedures ISAE3402 Level 2 accredited managed services Microsoft, HP, Citrix and Vmware accreditations
  4. 4. Cloud Centre of Excellence Our Partners
  5. 5. Our Mission C5 Alliance Group To improve our clients’ businesses, our workplace, our industry and our community through the innovative use of technology.
  6. 6. The C5 Alliance Group Limited Business Solutions to deliver your business advantage IT Services to run your business better
  7. 7. Bespoke Development Business Solutions to deliver your business advantage Process & Platforms Business Intelligence Business Solutions Tailored Training Technical Solutions Project Delivery
  8. 8. 24x7x365 Support IT Services to run your business better Hybrid Solutions 1st Time Fix 2nd & 3rd Line Support IT Services Security Patching ITIL V3 Incident Management Server Management End-of-Day Checklists Business Continuity Hosting Cloud Support
  9. 9. Customer Engagement You
  10. 10. Our History        1999 founded as ‘Contract 5 Limited’  2012 acquisition of Cronus Limited, a local IT solutions company  2013 acquisition of Itex Holdings Limited, in Jersey, Guernsey & the Isle of Man, enabling us to provide both reach and depth 2001 delivered Lloyds TSB internet banking 2008 rebranded as ‘C5 Alliance Limited’ 2009 secured Microsoft MCITP Enterprise qualifications 2010 launched new www.gov.je website 2011 opened new Guernsey Office 2012 achieved Microsoft Gold Business Intelligence highest level of proficiency awarded by Microsoft
  11. 11. Employee Legislation Auditing Industry Benchmark Relationship building Legal Interfaces International Reporting Global Regulators Going Concern CSR Industry Associations / Standards Operational Effectiveness Consumer-citizen-client Security Due Diligence Organisation Firms Suppliers Internal Reporting Tendering Central Government Politicians, Treasury, Auditors Data Protection Health and Safety Company Reporting Annual Reports Reputational Value Risk Reduction
  12. 12.   Regulatory Reporting ; Quantitative AIFMD FATCA – US and UK  C5 White Paper  New clients from July 2014, high net worth existing clients by 2015  Solvency II  Basel II and III Prudential Reporting  Liquidity Behavioural Adjustment  FSA 47/48 liquidity reporting
  13. 13. Regulatory Reporting ; Qualitative  AIFMD  Solvency II  Client Due Diligence & KYC  EU AML Directive  Retail Distribution Review  Personal Questionnaires  Records Management/ FOI  Policies, Procedures and behaviour monitoring
  14. 14. Stolen From KPMG presentation “Financial Services of the Future …..”
  15. 15.  Regulatory Reporting is highly manual  Paper or spreadsheet based  Data is always out of date with only periodic refreshes  Changes in circumstance requires manual A Common Scenario workflow  Each regulation takes similar time and cost to implement   New regulation requires headcount Organisation focuses on reporting on clients rather than servicing them
  16. 16. The Platform-based Strategy Reduce Risk    Single Version of the Truth   Scalable checklist based approach  Activity trail for internal and external audit Self service reduces transcription risk Remove manual entry and end user computing Build and visualise hierarchies and relationships
  17. 17.  The Platform-based Strategy Reduce Cost and Add Value Invest in platforms rather than wasting money on changing and testing unsuitable legacy systems  Self Service with familiar tools for internal and external customers  Bring Your Own Device  Simplification  Cost reduction  Scalable platforms for growth  Workflow and queue based practices allow insourcing and outsourcing
  18. 18. Platform architecture Source Data warehouse using Consume Regulatory Reporting Load Source System 2 Import Transform Validate Map & Normalise Extract Load Dimensions and Facts 70% 80% Dashboards And Boardpacks Present Cube for BI/KPI and Self-service reporting Flat Files Consolidation of data to create enable data analysis and create adaptable reporting solutions Excel Spreadsheet 90% 100% Source System 1 Self service reporting using built in Reporting portal Enriched data in CRM is synchronized back to the data warehouse Synchronized with SharePoint to drive workflows and collect input Self service Excel Analysis
  19. 19. • Alternative Investment Fund Manager Directive • • • AIFMD What is it? Teresa Brandts-Giesen C5 White Paper Implemented 22 July 2013 Aims: • Monitor and Supervise Risks to protect • investors Strengthen AI Market • Affects the management and marketing of AIFMs & AIFs in EU • Six sets of requirements for EU passport : • Authorisation • Conduct of Business • Operations • Reporting • Marketing • Depositary/Custodian
  20. 20.  Non EU Managers initial requirements :  Transparency and Reporting  Market in EU via National Private Placement Rules ( NPPRs, bilateral)  Final Reporting Guidelines – complex !  Portfolio concentration: by investment strategy, AIFMD For Non EU    principal markets/instruments, value and turnover Risk measures, liquidity and leverage of the AIF Exposures, leverage and Value At Risk Vega, net FX delta, and commodity delta, DV01 and CS01  C5 Jersey Client Proposal  Data in existing database  “Challenging calculations” like VaR, Greeks (δ, γ,    θ, σ …) calculated in MatLab Self Service reporting using SharePoint and Excel Simple user interface Automated reporting
  21. 21.  Dates  1st July 2014 - Collect tax relevant information  for new clients 31 Dec 2014 - High net worth clients (> $1m) reviewed (“remediation”)  USA  Wide range of information (“indicia”) required  Complex aggregation rules FATCA  UK  Report one year later  Simplified indicia focussing on Tax Residency  Non Domiciled Resident Alternative Reporting   Regime No recalcitrance or with-holding…just prison Next ?  UK is first of many IGA’s with Crown Dependencies in EU5/G20 pilot
  22. 22.  Major insurer Guernsey – multiple phase engagements  Requirements Analysis  Data warehouse  CRM implementation  C5 Alliance FATCA Experience Major UK Bank Jersey – multiple engagements       Requirements Analysis early 2012 Project Management to date System enhancements Infrastructure build Test co-ordination & performance Major Euro Bank Jersey – multiple engagements  Requirements Analysis  System Enhancements
  23. 23.  Lightly customised CRM interface to update FATCA specific information  Automated data from 7 legacy source Demonstration: FATCA reporting using CRM 2013 and data warehousing systems – very hard and expensive to change  Report from data warehouse, updated daily from source systems and CRM  Assist clients  Store full client history and audit trail  Manage updating incomplete information  Suggest classifications  Record decisions, 4 eyes if necessary
  24. 24. FATCA Platform – Opening Dashboard
  25. 25. FATCA Platform – Entity Views
  26. 26. FATCA Platform – Role based screens, read/write
  27. 27. FATCA Platform – Adding Indicia
  28. 28. FATCA Platform – Update tax classification
  29. 29. FATCA Platform – Documentation & 4 Eyes Control
  30. 30. CRM Platform – Contact information
  31. 31. CRM Platform – Contact information (cntd)
  32. 32. CRM Platform – Sales Management
  33. 33. CRM Platform – Business Development Workflow
  34. 34.   Document Sets  Records Management  Tasks  Drag/drop documents Demonstration: Client Due Diligence Using SharePoint 2013 SharePoint 2013 Enterprise Content Management  Nintex Workflow  SQL Server Data Warehousing  PerformancePoint Services  Visualisation  Designer  Audit
  35. 35. Data Warehouse Design Data Mart Core Business Systems Data Warehouse Finance MI Demonstration: Architectural Overview Enterprise Content Management and Business Intelligence ... Example Service Overview Compliance Application Client Review Middle Office Operations Cessation
  36. 36.   Future State Technology  Big Data and unstructured content  The Power of the Cloud  Hybrid Solutions Regulation  Greater reporting frequency  More national FATCA agreements  More exchange of information  More granular requirements  Shorter timescales to implement new     regulations Increased audit depth Frequently changing requirements Qualitative elements in regulation and proof of top down acceptance and compliance More individual accountability
  37. 37. ? Questions  Not to be treated as legal advice…
  38. 38. Materials www.c5alliance.com/News     This slide set (available shortly)  Data Warehousing with WhereScape RED FATCA White Paper v3 AIFMD White Paper Data Mining and Fraud Detection Case Study