C5 Alliance Group LimitedSimplifying Regulatory Reporting using Microsoft

Platforms

Dan Hare

Director, Head of Business Intelligence

Aonghus Fraser

Head of Process & Platforms

Our Mission

Agenda

Regulatory Reporting background

A platform-based strategy

Adding value via Regulatory Reporting

projects

Demonstrations using latest versions of

platforms

Future

Q&A

Our Credentials

Experience

Over 7,000 Business Solution projects delivered

120 IT Services contracts maintained

Infrastructure

170+ staff across the Channel Islands

First, second and third line levels of support 24x7x365

Business Continuity , Hosting and Hybrid Clouds

Qualifications

ITIL V3-based operations & procedures

ISAE3402 Level 2 accredited managed services

Microsoft, HP, Citrix and Vmware accreditations

Cloud Centre of Excellence

Our Partners

C5 Alliance

Group

Our Mission

To improve our clients’

businesses,

our workplace, our industry and

our community through the

innovative use of technology.

The C5 Alliance Group Limited

IT Services

to run your

business better

Business Solutions

to deliver your

business advantage

Bespoke

Development

Project

Delivery

Technical

Solutions

Tailored

Training

Business

Intelligence

Process &

Platforms

Business Solutions

to deliver your

business advantage

Business

Solutions

IT Services

to run your

business better

Incident

Management

2nd & 3rd

Line

Support

1st

Time Fix

24x7x365

Support

Hybrid

Solutions

Security

Patching

ITIL V3Business

ContinuityHosting Cloud

Support

End-of-Day

Checklists

Server

Management

IT

Services

You

Customer Engagement

Our History

1999 founded as ‘Contract 5 Limited’

2001 delivered Lloyds TSB internet banking

2008 rebranded as ‘C5 Alliance Limited’

2009 secured Microsoft MCITP Enterprise qualifications

2010 launched new www.gov.je website

2011 opened new Guernsey Office

2012 achieved Microsoft Gold Business Intelligence -

highest level of proficiency awarded by Microsoft

2012 acquisition of Cronus Limited, a local IT solutions

company

2013 acquisition of Itex Holdings Limited, in Jersey,

Guernsey & the Isle of Man, enabling us to

provide both reach and depth

Organisation

Firms

Consumer-citizen-client

Industry Associations /

Standards

Legal Interfaces

Suppliers

GlobalRegulators

Central GovernmentPoliticians, Treasury, Auditors

Auditing

International Reporting

Data Protection

Employee Legislation

Security

Industry Benchmark

Company Reporting

Annual Reports

CSR

Due Diligence

Internal Reporting

Operational Effectiveness

Health and Safety

Reputational Value

Tendering

Relationship building

Going Concern

Risk Reduction

Regulatory

Reporting ;

Quantitative

AIFMD

FATCA – US and UK C5 White Paper

New clients from July 2014, high net worth

existing clients by 2015

Solvency II

Basel II and III Prudential Reporting

Liquidity Behavioural Adjustment

FSA 47/48 liquidity reporting

Regulatory

Reporting ;

Qualitative

AIFMD

Solvency II

Client Due Diligence & KYC

EU AML Directive

Retail Distribution Review

Personal Questionnaires

Records Management/ FOI

Policies, Procedures and behaviour

monitoring

Stolen From KPMG presentation

“Financial Services of the Future …..”

A Common Scenario

Regulatory Reporting is highly manual

Paper or spreadsheet based

Data is always out of date with only

periodic refreshes

Changes in circumstance requires manual

workflow

Each regulation takes similar time and cost

to implement

New regulation requires headcount

Organisation focuses on reporting on

clients rather than servicing them

The Platform-based

Strategy

Reduce Risk

Single Version of the Truth

Self service reduces transcription risk

Remove manual entry and end user

computing

Scalable checklist based approach

Build and visualise hierarchies and

relationships

Activity trail for internal and external audit

The Platform-based

Strategy

Reduce Cost

and Add Value

Invest in platforms rather than wasting

money on changing and testing unsuitable

legacy systems

Self Service with familiar tools for internal

and external customers

Bring Your Own Device

Simplification

Cost reduction

Scalable platforms for growth

Workflow and queue based practices allow

insourcing and outsourcing

Platform architecture

Data warehouse using

Consolidation of data to create

enable data analysis and create adaptable reporting solutions

Source System

1

Flat

Files

Source System

2

Load

Import

Transform

Validate

Map &

Normalise

Extract

Load

Dimensions

and Facts

Present

Cube for

BI/KPI and

Self-service

reporting

Regulatory

Reporting

Dashboards

And

Boardpacks

Self service

Excel Analysis

Enriched data in

CRM is synchronized

back to the data

warehouse

Self service reporting

using built in

Reporting portal

Synchronized with

SharePoint to

drive workflows

and collect input

Excel

Spreadsheet

100%

90%

80%

70%

Source Consume

AIFMD

What is it?

• Alternative Investment Fund Manager

Directive• Teresa Brandts-Giesen C5 White Paper

• Implemented 22 July 2013

• Aims:• Monitor and Supervise Risks to protect

investors

• Strengthen AI Market

• Affects the management and marketing of

AIFMs & AIFs in EU

• Six sets of requirements for EU passport :• Authorisation• Conduct of Business• Operations• Reporting• Marketing• Depositary/Custodian

AIFMD

For Non EU

Non EU Managers initial requirements :

Transparency and Reporting

Market in EU via National Private Placement Rules

( NPPRs, bilateral)

Final Reporting Guidelines – complex !

Portfolio concentration: by investment strategy,

principal markets/instruments, value and turnover

Risk measures, liquidity and leverage of the AIF

Exposures, leverage and Value At Risk

Vega, net FX delta, and commodity delta, DV01

and CS01

C5 Jersey Client Proposal

Data in existing database

“Challenging calculations” like VaR, Greeks (δ, γ,

θ, σ …) calculated in MatLab

Self Service reporting using SharePoint and Excel

Simple user interface

Automated reporting

FATCA

Dates 1st July 2014 - Collect tax relevant information

for new clients

31 Dec 2014 - High net worth clients (> $1m)

reviewed (“remediation”)

USA Wide range of information (“indicia”) required

Complex aggregation rules

UK Report one year later

Simplified indicia focussing on Tax Residency

Non Domiciled Resident Alternative Reporting

Regime

No recalcitrance or with-holding…just prison

Next ? UK is first of many IGA’s with Crown

Dependencies in EU5/G20 pilot

C5 Alliance

FATCA Experience

Major insurer Guernsey – multiple phase

engagements

Requirements Analysis

Data warehouse

CRM implementation

Major UK Bank Jersey – multiple

engagements

Requirements Analysis early 2012

Project Management to date

System enhancements

Infrastructure build

Test co-ordination & performance

Major Euro Bank Jersey – multiple

engagements

Requirements Analysis

System Enhancements

Demonstration: FATCA

reporting using CRM

2013 and data

warehousing

Lightly customised CRM interface to

update FATCA specific information

Automated data from 7 legacy source

systems – very hard and expensive to

change

Report from data warehouse, updated

daily from source systems and CRM

Assist clients Store full client history and audit trail

Manage updating incomplete information

Suggest classifications

Record decisions, 4 eyes if necessary

FATCA Platform – Opening Dashboard

FATCA Platform – Entity Views

FATCA Platform – Role based screens, read/write

FATCA Platform – Adding Indicia

FATCA Platform – Update tax classification

FATCA Platform – Documentation & 4 Eyes Control

CRM Platform – Contact information

CRM Platform – Contact information (cntd)

CRM Platform – Sales Management

CRM Platform – Business Development Workflow

Demonstration:

Client Due Diligence

Using SharePoint 2013

SharePoint 2013 Enterprise Content

Management Document Sets

Records Management

Tasks

Drag/drop documents

Nintex Workflow Visualisation

Designer

Audit

SQL Server Data Warehousing PerformancePoint Services

Demonstration:

Architectural Overview

Core Business Systems

Data Warehouse

Data Mart

Finance MI

...

Enterprise Content Management and

Business Intelligence

Data Warehouse Design

Example Service Overview

Application Client Review Cessation

Compliance

Middle Office Operations

Future State

Technology Big Data and unstructured content

The Power of the Cloud

Hybrid Solutions

Regulation Greater reporting frequency

More national FATCA agreements

More exchange of information

More granular requirements

Shorter timescales to implement new

regulations

Increased audit depth

Frequently changing requirements

Qualitative elements in regulation and proof of

top down acceptance and compliance

More individual accountability

?Questions

Not to be treated as legal

advice…

Materials

This slide set (available shortly)

FATCA White Paper v3

AIFMD White Paper

Data Mining and Fraud Detection

Case Study

Data Warehousing with

WhereScape RED

www.c5alliance.com/News