The financial industry faces challenges in client reference data and the onboarding of clients on a daily basis. These topics were the focus of a series of forums sponsored by The Depository Trust & Clearing Corporation (DTCC): “A View from the Top: Entity Data Management & KYC Onboarding.” Both the buy side and sell side attended these gatherings held around the globe, London, Paris, Sydney, Singapore and Hong Kong.
The event featured three sessions that addressed distinct issues surrounding entity data management:
- Managing Data in the Face of New Regulation and Evolving Business Models, Hilaire Bes de Berc, Executive Director, Head of DTCC Sales, EMEA
- A Strategic Approach: Overcoming the Challenges of Client Data and KYC Onboarding (panel discussion)
- Legislation/Regulation & Impact on Entity Data Management, Michalis Sotiropoulos, Head of Brussels office, DTCC
Bes de Berc, DTCC’s Head of EMEA Sales, identified in his presentation the top challenges facing entity data management today, in this era of increased regulation and compliance, poor data quality, fragmentation and the lack of transparency.
“The current industry focus on improving legal entity data management has stemmed from a confluence of factors related to risk management, regulatory compliance, and an increasingly competitive capital markets sector,” he said. “While new regulatory pressure is driving firms to focus on improving legal entity data management, it remains immature and fragmented.”
Bes de Berc presented an overview of DTCC’s strategic vision behind entity data/client lifecycle management to present a single entry point of integrated services to DTCC clients. Those services include Avox, the Global Trade Repository (GTR), Counterparty Reference Data Enrichment (CRDE), Clarient Global, Alert/SSI utility and the GMEI Utility.
Next on the agenda was the panel discussion, Overcoming the Challenges of Client Data and KYC Onboarding, moderated by Matthew Stauffer, CEO, Clarient Global. Mark Davies, Managing Director, Avox, was among the panel of experts who discussed today’s environment of increased regulatory complexity, heightened data sensitivity, inconsistent standards and operational redundancy, among others.
Panelists talked about the importance of a single platform to manage client lifecycle events as one solution. The group discussed the utility model as a beneficial way to manage client reference data as it provides simplified interactions and a unique set of benefits, including an integrated legal entity view, streamlined client interactions, mutualized cost and improved data quality, among others.
Sotiropoulos, Head of the DTCC’s Brussels office, covered policy and regulatory challenges facing entity data management: poor data quality, costs to the market participants to comply with new regulations and legal uncertainty resulting from conflict of rules and inconsistency.
“Authorities must ensure that they provide a clear and consistent interpretation and enforcement of international standards,” he told the audience. “They should work with the financial industry to pursue technical measures, such as the global Legal Entity Identifier system, which standardizes counterparty identification, and Know Your Customer platforms that help avoid duplicating due diligence work.”
Sotiropoulos noted that solutions are already being implemented, but they need regulators’ support to reach the scale needed to achieve more complete and reliable due diligence.
Entity Data Management & KYC Onboarding - London
Entity Data Management & KYC Onboarding - Paris