Main news of the Sofia S69 release

Compliance

IVASS – SEGREGATED FUNDS NEW REPORTING

Following the “Lettera al Mercato” published by IVASS and introducing new reporting for Segregated Funds and new sending rules, the Segregated Funds module has been updated to allow the creation of the three new surveys (GSFUA, GSFUM and GSFUR). These new surveys will entirely replace the previous reporting as per Regolamento 38 starting from reporting with reference date not earlier than October 31st 2020.

For further information: sofia.gsrt@simcorp.com

IVASS – NEW MODULE FOR SEGREGATED FUNDS REPORTING TRANSMISSION

The new module “Interfaccia Web Service Infostat” is now available: it allows the transmission of the new IVASS surveys for Segregated Funds for which the Infostat platform needs to be used supporting the call Application-to-Application (A2A) of a Web Service. The new module allows sending the IVASS reporting in XML format directly from Sofia to Infostat by means of a web interface: it is also possible to check Infostat feedback messages.

For further information: sofia.gsrt@simcorp.com

SFTR

In Sofia new fields have been inserted in order to store information on counterparties, contracts, and transactions to be reported in accordance with the SFTR Regulations. This information is related to REPO and securities lending transactions, together with the related collateral holdings.
SFTR reporting can then be managed using the SimCorp Group solution. This solution integrates data extracted from Sofia directly in the SimCorp Regulatory Reporting Platform, thus offering a modern and functional User Interface, constantly up to date with the regulations.

For further information: sofia.info@simcorp.com

IFRS 17 – NEW MODULE “ASSET RETURN FOR INSURANCE”

The development of Sofia's new "Asset Return for Insurance" module is underway: it is a flexible solution allowing to automate the entire feeding process of the IFRS 17 engine for the Variable Fee Approach (VFA) accounting model, with particular attention to the mirroring application (OCI option).
The new module also allows to manage the Unit Linked portfolios in which only a part of the policies has an insurance character and falls under IFRS 17, allowing to quantify the change in the assets’ Fair Value that can be attributed only to this part, for the purpose of calculating the CSM.

For further information: sofia.IFRS17@simcorp.com

RISK ALM

STRATEGIC PLANNING

Sofia's investment planning tools have been enhanced and they now support two forecasting cycles, making Sofia an increasingly comprehensive tool to support strategic planning:

• a multi-axis cycle, with which it is possible to massively and automatically create a series of forecasts on one or more portfolios using multiple scenarios referring to different axes (curves, dividends, credit risk, asset allocation, mass lapse and new production);

• a multi GAAP cycle, thanks to which it is now possible to measure the effects of simulated trading at the Segregated Funds and free portfolio level on the local, IAS and IFRS 9 levels.

For further information: sofia.risk-alm@simcorp.com

LIABILITIES RECONCILIATION

A reconciliation tool for data imported on two different dates for the same policy portfolios is now available within the ALM module. The functionality is based on the comparison of the result of a projection of the policies present at the start date with the policies present at the end date and makes it possible to identify those for which discrepancies are present that could have an impact on data management or on the hypothesis of projection of passive flows.
To facilitate the results navigation, an interactive report has been developed in PowerBI.

For further information: sofia.risk-alm@simcorp.com

 

FINANCIAL INSTRUMENTS

DERIVATIVE HEDGING

The Hedging Accounting module has been enriched with new functionalities allowing to manage hedging within portfolios that follow the rules of the statutory insurance balance sheet. This hedge will benefit from all the functionalities already in place for IAS/IFRS hedges.
The new developments are part of the interpretative framework of the so-called "Coherent Measurement", which provides in its general principles to carry out a joint evaluation of derivative instruments and underlyings within the same strategy.

For further information: sofia.derivati@simcorp.com

INFRASTRUCTURE

CALENDAR MANAGEMENT

It is now possible to manage more than one holiday calendar in Sofia by creating custom calendars. To be able to use the new calendars, a feasibility analysis needs to be performed by SimCorp Italiana to assess the actual desired use of the new functionality.

For further information: sofia.info@simcorp.com