10 Wolters Kluwer clients successfully test Singapore’s Data Collection Gateway solution
One of the greatest challenges in regulatory reporting, for compliance departments and the data systems that support them, is keeping pace with the mercurial spirit of financial supervisors. No longer content to introduce a framework and let the industry adjust to its requirements in the fullness of time, authorities continually tinker, tweak and amend their rules, or else devise new procedures for submitting data. If you’re a compliance officer, you’ll have to stay on your toes and keep moving forward, often along a different route from the one you started out on.
The new Data Collection Gateway (DCG) created by the Monetary Authority of Singapore offers a prime example. The gateway is a fully automated platform on which financial firms will file their returns and survey submissions under MAS 610 and MAS 1003. A replacement for the authority’s Electronic Returns Submission System (ERSS), the DCG can collect large, granular sets of structured data, while providing a better user experience. Beyond collecting and publishing data faster and more accurately, the new system permits more facile administration and tracking of submissions. Thanks to its ability to be integrated with various analytical platforms, moreover, the gateway also allows submissions to be analyzed and visualized more easily.
At least it will for institutions that have the expertise and equipment to adjust to the MAS’s technological enhancement and reap its benefits. It’s still early days, but that seems to be the case for users of Wolters Kluwer’s OneSumX for Regulatory Reporting – Singapore, the first DCG-compatible solution, developed in partnership with Vizor Software, the firm that developed the MAS platform. The DCG test environment only became available in April, but in the short time since the rollout, 10 Wolters Kluwer clients have successfully tested the DCG for their revised MAS 610 and 1003 returns.
The DCG is an example of “SupTech,” short for Supervisory Technology. A close cousin of Regulatory Technology, or RegTech, SupTech is a term of art for the increasingly sophisticated technology that regulatory authorities have had to develop to handle the inundation of data that they are requiring institutions to submit. As regulators upgrade their tech, the industry is having to do the same to meet the regulators’ more stringent requirements and interface with their systems. As the emerging vernacular would have it, you need your RegTech to be compatible with their SupTech.
Not just for dealing with the DCG, either. The new platform almost certainly will not be the MAS’s final act. Other adjustments to reporting requirements, in content and form, are likely on their way, perhaps in the very near future after the authority alters procedures in response to industry feedback or expands the DCG to handle other types of returns. And change will not be confined to Singapore. Better SupTech mousetraps are anticipated all over the world, so your systems must be ready for them, wherever you are.
What’s the best way to go about that? The experience of Wolters Kluwer clients in Singapore may point the way toward the most efficient, least disruptive approach for managing the coming SupTech revolution. That approach demands that the industry view SupTech and RegTech as the same set of processes and tools employed for the same objective: producing more accurate, consistent and granular data reports faster and more often. This is becoming evident with more regulators like the Australian Prudential Regulation Authority following suite in form of APRAConnect, which is on similar lines of the DCG platform.
Those processes boil down to greater integration within an organization and between it and the authorities it reports to. The primary tool is a flexible, adaptable and scalable data solution that enables the closer connections within your organization, is fully compatible with regulators’ tech, and is nimble enough to handle inevitable change. The solution will be built, ideally, on a simple, elegant design with no unnecessary complexity. Such efficient, streamlined architecture facilitates internal and external communication, optimizing all facets of regulatory compliance and allowing managers to adapt faster and with greater agility to revisions of specific business rules or of broad analytical or submission procedures.
Most important, it will help accelerate the melding of RegTech and SupTech, giving regulators more freedom to push toward a unified set of global compliance standards that will benefit them and the industry alike. That will be the real game changer.