Here is our pick of the 3 most important XBRL news stories from the last week.
The European Banking Authority (EBA) published an analysis of the current RegTech landscape in the EU. The Report assesses the overall benefits and challenges faced by financial institutions and RegTech providers in the use of RegTech. It also identifies potential risks arising from RegTech solutions that supervisors will need to address and proposes actions designed to enhance knowledge and skills in competent authorities. These actions also aim to ensure technological neutrality in regulatory and supervisory approaches to RegTech, whilst addressing any inadvertent obstacles within the Single Market to facilitate the adoption of RegTech across the EU.
Even though XBRL is featured only once in said report, it is clear from the way it is featured that the format is a crucial means to the end of improving efficiency and effectiveness of regulation by adopting technology.
The Deputy Governor of the People’s Bank of China (PBOC) has called for greater use of Legal Entity Identifiers (LEIs) as a key part of the digitisation of financial operations in China. Writing in PBOC’s official news publication, Fan said that China’s 14th Five-Year Plan “calls for accelerating the digital transformation of financial institutions, accelerating the transformative application of international standards, and actively participating in the drafting of international regulatory and technical standards for areas including data security, digital currency and digital taxation.”
We continue to watch with interest how China pushes the envelope in digital transformation of pretty much everything.
The European Financial Reporting Advisory Group (EFRAG) is seeking input on its public consultation paper on ‘Due Process Procedures for EU Sustainability Reporting Standard-Setting,’ with comments due by 15 September 2021.
While a consensus is emerging that the IFRS ISSB will develop the global baseline (carefully avoiding “minimal” here) sustainability standard for its investor target audience, EFRAG is pushing ahead with an even more ambitious multi-stakeholder, double materiality layer on top. We are confident that both standard setters’ work will be improved by the enhanced technical discipline brought about by developing the digital reporting frameworks in parallel – a historic first!
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.
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