regulatory reporting
Support for the production of regulatory reporting
Sofia has modules for the management of compliances required by the main regulatory authorities.
The suite of modules related to regulatory compliance supports the day-to-day activities of the Back Office in the management of compliance requirements and the production of related reporting.
Sofia modules:
The module enables Companies to demonstrate that they have assets of sufficient quantity (and quality) to cover their commitments to policyholders. It is designed for both Companies operating in non-life and life insurance (classe C, classe D.I and D.II) and is prepared to produce all IVASS reporting with respect to direct and indirect coverage.
The module enables the calculation of the return on Segregated Funds, in order to reassess the technical reserves associated with “revaluable life policies.” It is possible to calculate annual, quarterly, monthly and slipping returns, with or without a Fondo Utili, depending on the needs arising from the fund regulations.
For the equity segment, the module enables the reconstruction of the history of the LIFO layers that make up each stock holding while also considering any nominal changes from one position to another. Stratification allows the following regulations to be applied:
- PEX (Participation EXemption), which requires calculation of any non-taxable portion of realized gains.
- DW (Dividend Washing), which requires calculation of the portion of realized losses that are physically not countable by virtue of dividends collected on those positions in the past.
For the bond segment, the module allows you to calculate the percentage of nominal for which it will be possible to accrue realized trading gains from a sale (TUIR, Art.86, para.4).
In the framework of Solvency II directories (2009/138/EC) emitted by EIOPA, several modules are available in Sofia in order to meet the requirements of the three pillars of the norm.
PILLAR I: SCR CALCULATION
Quantitative requirements, concerning investments and technical reserves
This module allows the users to calculate the Market Risk component of assets in portfolio based on the standard formula, as required by the Pillar I of Solvency II regulation. This module provides a fast calculation instrument that allows the continuous monitoring and in real time of the SCR. The calculation can be launched on a portfolio or on a portfolios group in order to control the daily evolution of several factors. The calculation function is linked to the Look Through Sofia module, therefore it is possible to calculate the capital requirement obtained by exploding or not exploding the funds. The calculation of SCR at future dates in what-if scenarios and the calculation of Best Estimate of Liabilities and Loss-Absorbing Capacity of Technical Provisions are also supported.
PILLAR II: DATA QUALITY CHECKS
Requirements concerning organization and governance
A module dedicated to data quality check is available in Sofia. This module allows to automatically perform consistency and completeness data checks, based on a macro system. The results of the detected anomalies are listed and archived in a dedicated environment. A standard checks set is provided with the module. Users can also freely add customized checks suitable for their needs. Thanks to this module it is possible to optimize processes aimed at ensuring the quality of the information collected in Sofia in terms of adequacy, completeness and accuracy.
It is also possible to enable automatic integration of missing or incorrect data, based on predetermined rules.
PILLAR III: PRODUCTION OF QUANTITATIVES REPORTING TEMPLATES
Requirements concerning prudential information and QRT publications
This module allows the following quarterly and annual reports on assets: S.06.02, S.06.03, S.06.04, S.07.01, S.08.01, S.08.02, S.09.01, S.10.01 and S.11.01 to be produced.
Once basic parameters such as the portfolios perimeter, the ratings or the prices to be used are defined, the user can obtain in a few clicks the values required by EIOPA. The results obtained can then be exported in Excel, CSV or ASCII format.
If needed, it’s possible to develop personalized exports based on the clients' requirements.
The solution enables the use of sustainability-related data to support internal investment governance and to comply with key regulations in force.
The solution consists of a new data structure dedicated to Entities (including sovereign states and supranational entities) and data references, capable of accommodating the high volume of information focused on environmental issues, with the aim of:
- store sustainability data of the most diverse nature (e.g., PAIs, KPIs, Scores, Ratings, exclusion criteria, etc.);
- enable the fulfillment of all the regulatory requirements imposed on insurance portfolios;
- enable, through Sofia's set of BI functionalities and tools, the monitoring and evolution of the situation of its financial portfolios in relation to the objectives and obligations assumed by the Company with regards to environmental issues.
All the new fields are available in Sofia's Positions environment, and for these all the standard functionalities provided by the Program are applicable.
Specific modules and functionalities are grafted onto this new structure that deal with:
- definition and management of scores, ratings, exclusion criteria, sustainability indicators and limits related to the ESG world.
- production of the main requirements of the current regulations in force
- management in Sofia of the EET file from FinDatEx (European ESG Template) both at import and export level
- production of Ania Annex B bis for Segregated Funds.
The module enables the preparation of files to be imported into the Banca d’Italia's PSDR software for the collection of financial information required by the reporting system. Depending on the reporting profile assigned to the Company, the following questionnaires can be completed:
EMF - Eventi Mensili Finanziari
OMF - Operazioni Mensili Finanziarie
TTN - Transazioni Trimestrali Non Finanziarie
CAF - Consistenze Annuali Finanziarie.
In line with Banca d'Italia and Consob regulations, the SGR Reporting module supports the data extraction processes required by the reports to the Supervisory Boards, in compliance with the requirements for asset management companies.
The GPM Reporting module supports the processes of data extraction and compilation of templates for mandatory reporting to be sent to clients.