Reporting and Data Control Framework (RDCF)

Background:

In the wake of Brexit, a multinational financial services corporation decided to establish a new subsidiary in Ireland to ensure continuity of operations and maintain passporting rights within the European Union. To comply with regulatory requirements and uphold Solvency II standards, the company needed to set up a robust Reporting and Data Control Framework (RDCF). This framework would not only facilitate regulatory compliance but also ensure accurate financial reporting and data governance. As part of the implementation process, close collaboration with key C-level stakeholders including the CFO, and CRO was crucial to define the scope, allocate budget resources, and obtain necessary approvals from regulatory bodies.

Engagement Objectives:

Establish RDCF: Develop and implement a comprehensive Financial Reporting and Data Control Framework tailored to the needs of the newly formed Irish subsidiary, aligning with Solvency II requirements and post-Brexit regulatory landscape.

Regulatory Compliance: Ensure adherence to regulatory standards and passporting rights by implementing robust financial reporting and data control measures.

Stakeholder Engagement: Engage with key C-level stakeholders, including the CEO, CFO, and CRO, to gain consensus on the scope, budget allocation (approximately £900K), and obtain approvals from the Audit Committee/Disclosure Committee.

Our Response:

Scope Definition and Budget Allocation:

Conducted thorough discussions and workshops with key stakeholders to define the scope of RDCF implementation, considering regulatory requirements, business objectives, and risk management considerations.

Collaborated closely with finance, risk, and compliance teams to estimate the budget required for RDCF setup, ensuring alignment with organizational goals and available resources.

RDCF Development and Implementation:

Assembled a multidisciplinary team comprising financial experts, data analysts, and regulatory compliance specialists to design and develop the RDCF framework.

Customized RDCF components to address specific regulatory requirements under Solvency II and ensure seamless integration with existing financial systems and processes.

Implemented data control measures, including data governance policies, data quality controls, and data validation processes, to maintain accuracy and integrity of financial data.

Stakeholder Management and Reporting:

Presented RDCF proposals, budget estimates, and implementation timelines to the CEO, CFO, and CRO, soliciting feedback and alignment with organizational objectives.

Prepared detailed papers and documentation for review and approval by the Audit Committee/Disclosure Committee, highlighting the rationale, benefits, and assurance mechanisms of RDCF.

Provided regular updates and progress reports to key stakeholders, addressing any concerns or issues promptly and ensuring transparency throughout the implementation process.

Value Delivered:

Regulatory Compliance: Successfully established a robust RDCF aligned with Solvency II requirements, enabling the Irish subsidiary to comply with regulatory standards and maintain passporting rights post-Brexit.

Risk Mitigation: Implemented comprehensive data control measures and assurance mechanisms to mitigate financial and regulatory risks, enhancing transparency and accountability in financial reporting processes.

Stakeholder Confidence: Secured buy-in and support from key C-level stakeholders through effective communication, transparency, and alignment of RDCF objectives with organizational goals.

Operational Efficiency: Improved efficiency and accuracy in financial reporting processes by implementing standardized policies, procedures, and controls within the RDCF framework.

Future Readiness: Positioned the Irish subsidiary for future growth and regulatory changes by establishing a flexible and scalable RDCF framework adaptable to evolving business requirements and regulatory landscapes.

In conclusion, the successful implementation of the Financial Reporting and Data Control Framework for the newly formed Irish subsidiary not only ensured regulatory compliance and passporting rights post-Brexit but also strengthened risk management practices and stakeholder confidence in the organization's financial reporting processes.