April 13, 2016 –
On April 5th, Bank Holding Companies were required to submit their board approved capital plans and FR Y-14A stress testing results to the Federal Reserve. While proposed changes to reporting forms and instructions are typically viewed as a routine process, the upcoming inclusion of a CFO attestation of the filed reports, for both the actual data as well as the projections, raises the bar on expectations and accountability. Now is the time for banks CFOs to ensure reporting is aligned with future regulatory requirements.
Prompted by the Federal Reserve’s ongoing concerns with data quality amongst material inaccuracies in past CCAR stress test submissions, the upcoming requirements demand that the CFO, or an equivalent senior officer, attest to the responsibility and effectiveness of the internal controls over the filed reports, as well to the material accuracy of the reported data. The CFO would also need to attest that the company’s controls are assessed regularly by management and audited annually. In addition, there is a requirement to identify and promptly report internal controls, material weaknesses and material errors and omissions in reported data.
Annual CCAR stress tests have become one of the most closely watched annual events by bank investors, since failing to meet the quantitative capital threshold forces banks to trim or cancel their planned distribution to shareholders. With these particular changes to the stress tests, banks and CFOs who fail to comply with these new requirements, on or before December 31, 2016, will have to face the regulatory implications including possibly large fines and legal consequences. To avoid these consequences and ensure banks can properly evolve to this ever changing regulatory landscape, CFOs must have access to the right risk management and reporting tools.
AxiomSL understands the pressure CFOs are under to comply with these new requirements. In addition to the latest attestation regarding capital plan and stress testing, CFOs must meet regulatory reporting requirements across multiple regulators and jurisdictions. To meet this need, AxiomSL has set up data management, regulatory reporting and risk management solutions to administer all internal data procedures, simplify, standardize and automate processes, and improve data integrity to successfully enhance decision-making. The AxiomSL platform integrates clients’ source data from disparate systems and locations, without any data conversion, in a cost-effective manner, providing flexibility, transparency, traceability and the ability to drill down into data sources. It also delivers analytical applications in the areas of data integration and warehousing, financial risk management, regulatory reporting, compliance and financial control. AxiomSL enables financial institutions to have full control over every step of the process and can adapt quickly to evolving regulations, like CCAR.
If you’re a CFO, be sure to arm yourself with the right resources and find a trusted partner like AxiomSL to deliver data transparency you need to meet your regulatory reporting requirements. There is no need to get stressed out over the testing results.