Here is our pick of the 3 most important XBRL news stories this week.
The global regulatory community has put its support behind digital regulatory reporting (DRR) initiatives acknowledging supervisors require the ability to collect better quality data more efficiently. The Bank of International Settlements (BIS), the European Commission, the European Banking Authority (EBA), the European System of Central Banks (ESCB), the Financial Stability Board (FSB), the U.S.’s Federal Deposit Insurance Corporation (FDIC), the Group of 20 (G20) and UK regulators have all either issued reports, hosted TechSprints or announced new work in September and October on the DRR topic.
Here’s to a good overview of recent developments in the regtech / digital reporting space around the world.
With unusual extra pressures stemming from the Covid-19 crisis, the UK’s Financial Conduct Authority has announced a one-year delay to the introduction of mandatory ESEF requirements in the UK. While the introduction of machine-readable financial statements and the mandatory tagging of basic financial information was scheduled for January 2021, they will now come into effect January 2022.
Unsurprising news – we’ll be on the lookout for a summary list of jurisdictions that postpone introduction.
As Hong Kong Fintech week gets underway, Eddie Yue, Hong Kong Monetary Authority’s (HKMA’s) Chief Executive, has announced a raft of new initiatives designed to take advantage of tech innovation. A new data strategy was amongst the measures announced. Currently at concept stage, the new Commercial Data Interchange (CDI) will allow for easier flow of data between banks and sources, allowing, for example, alternative data to be used in credit scoring and trade-related data to facilitate trade finance applications. HKMA hopes this will help small and medium enterprises to benefit from access to their own data.
Roadmaps are seriously underrated! The problem is that their preparation requires a lot of forward looking, hard work, which it is not easy to free up resources for in the daily slog. But the payoff is that the issuing regulatory entity can easily assert their authority on a material level, i.e. without having to take recourse to authority.
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
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