Industry Involvement in Regulatory Processes for Integrated Reporting Workshop

EBA Regular Use Item 3: Industry involvement in the regulatory processes Workshop on Integrated Reporting 1st December 2022

EBA Regular Use ECB-UNRESTRICTED Outline Outline Key objectives for building collaboration with the industry 1 Industry involvement ongoing engagement 2 Interaction of the reporting contact group with other specific activities 3 Principles for interaction on regulatory process 4 Type of tasks for industry involvement: regular and specific 5 2

EBA Regular Use 1. Key objectives for building collaboration with the industry 1. Key objectives for building collaboration with the industry ECB-UNRESTRICTED Importance to involve the industry from early stages of the reporting development process 01 03 Establishing a regular channel for the cooperation between authorities and the industry to include industry advice Positive effects on the quality and design of reporting (avoiding duplications of data requests and ad hoc collections) 02 04 Achieve a balance of cost and benefit for institutions and authorities with the objective to make reporting more efficient and less costly to produce Leverage on the expertise achieved by the industry through other initiatives and projects Authorities have a strong commitment to work together to turn this vision into reality, ensuring the new system is feasible for both authorities and industry 3

EBA Regular Use 2. Industry involvement 2. Industry involvement ongoing engagement ongoing engagement ECB-UNRESTRICTED Tools for cooperation between the JBRC - reporting contact group Reporting contact group Permanent group of industry representatives JBRC dialogues regularly with the reporting contact group Composition: the composition of the contact group would be done through public call for interest to the general public. The call for participants will be done via the JBRC Regular meetings to discuss relevant topics Terms of Reference on how these meetings need to be organised will need to be considered Joint expert groups (authorities and industry reporting expert proposed by the reporting contact group) Joint forum for discussion/work on a given subject and on the basis of a specific mandate Minimum set of guidelines to consider when setting up the contact group The members of the group would be pre-selected by the JBRC through a public call for application. The composition of the group shall be publicly disclosed. The industry to be called to be part of the Joint expert groups by the JBRC These joint groups will be set up for specific topics (e.g. modelling, semantic integration, new reporting topic)with different duration depending on the topic. It would be necessary also to provide some terms of reference to provide: the mandate for the group The input of the joint expert groups would be advisory and could take the form of recommendations or reports to the JBRC a selection procedure for the candidates Interaction of the reporting contact group with other specific activities The contact group could interact closely with other initiatives and projects if relevant for the a set of principles, confidentiality rules a list of tasks and duties development of the integrated reporting system. The experts on other initiatives could also be the terms of appointment: period and frequency in case called by the JBRC to participate and be part of specific expert groups when necessary Leveraging also on the expertise achieved by the industry on other initiatives such as BIRD members could be renewed after a specific term 3

EBA Regular Use 3. Interaction of the reporting contact group with other specific activities 3. Interaction of the reporting contact group with other specific activities ECB-UNRESTRICTED Reporting contact group Other initiatives Focus is on industry collaboration to facilitate reporting processes on institutions side (compliance and efficiency related) including a compliance data dictionary Focus is on the regulatory related processes including the regulatory data dictionary contains the reporting requirements requested by the authorities Are built taking the regulatory processes as given Voluntary to reporting institutions Mandatory to reporting institutions e.g. BIRD; PUMA, AUREP and other initiatives on data standardization such as ISDA, GLEIF Examples: EBA DPM dictionary, IReF dictionary How can we leverage on work done/findings from other initiatives to improve the regulatory processes? Both initiatives are driven by similar objectives (data standardisation, data harmonisation, efficiency gains) Lessons learned, findings Synergies on investigation processes (e.g. pull-push approach, granularity ) Reporting solutions Leverage on new technologies , smarter reporting requirements

EBA Regular Use 4. Principles for interaction on regulatory process 4. Principles for interaction on regulatory process ECB-UNRESTRICTED Proportionality and participation Transparency, openness and accountability Confidentiality of information Voluntary nature Resources Effectiveness Identify those specific topics where the industry could be involved and which others will need to be taken only by authorities Guarantee an efficient collaboration by ensuring a balanced number of committed members involved. Provide the industry group with a reasonable period in which to make informed and effective contributions The group will operate on a voluntary basis and previous call for expression of interest issued by the JBRC Make the consultation process transparent to those involved and to the general public The group should be open to all interested parties with expertise in reporting European Commission Better regulation Guidelines provides also standards and principles to govern the relations with stakeholders 6

EBA Regular Use 5. Type of tasks for industry involvement: regular and specific (1/2) 5. Type of tasks for industry involvement: regular and specific (1/2) ECB-UNRESTRICTED Type of tasks 1 Production of the reporting requirements Regulatory reporting process 2 Production of the technical package on data standardisation 3 Specific activities Joint work/discussion with the industry on those topics that are necessary for the development of the integrated system (i.e: Semantic integration, modelling, granularity) Expected to participate through Joint expert groups (authorities + industry) if needed 7

EBA Regular Use 5. Type of tasks for industry involvement (2/2) 5. Type of tasks for industry involvement (2/2) ECB-UNRESTRICTED Specific activities through joint experts' groups. For example, on: Planning of reporting requirements Continued interaction during implementation to address questions and understand industry challenges Ex-ante discussions on draft requirements, costs and merits in meetings, surveys and workshops Granularity assessment Pre-Consultation Implementation Modelling Interaction focused on modelling and technical package once final reporting requirements are clear Data standardisation and semantic integration Preliminary discussions on semantic integration or modelling Activities related to regular reporting process: JBRC and permanent industry reporting contact group Other activities identified by JBRC together with industry reporting contact group Discussions on reporting requirements, semantic integration and data modelling Finalisation Consultation Enhanced interaction during consultation - regular meetings for industry early feedback Further discussions after consultation based on feedback received and until finalisation of the product Including discussions on reporting requirements, semantic integration and modelling 8 _

EBA Regular Use ECB-UNRESTRICTED Thank you for your attention! Questions or comments?