Charles Morel (CEO of MLAdvisory) and Stephane Eyraud (CEO of Chappuis Halder & Co.) opened the event with a word about Frankfurt as a unique target market due to the presence of the ECB and other major European banks, highlighting the establishment of both consulting companies’ offices there as essential to cover all topics faced by financial institutions, while leveraging on synergies between MLAdvisory and CH&Co.

As main challenges for 2018, they outlined the upcoming changes in regulation and methodologies, the application of IFRS 9 and increasing requirements on disclosure, daring institutions to increase the efficiency of their reporting units

The main objective of Pillar III is to enforce market discipline through regulatory disclosures, enabling market participants to access key information relating to a bank’s performance, thereby increasing transparency and confidence about the main risks carried by an institution. To manage the complexity of Pillar III and its evolution, as well as the new EBA templates for 2018 Pillar III reports, MLAdvisory has developed and implemented a set of level 1 Pillar III specific controls in a unified tool.

When producing supervisory reports, banks must typically manage a vast and widely-sourced set of inputs to produce a large number of regulator-specific outputs. Given this, verifying that final results are accurate is a prominent challenge for supervisory reporting departments. MLAdvisory Consultant Michel Tuon explains how MLAdvisory has developed and implemented an in-house system based on ‘indicators’, using relevant business experts to better validate reporting figures.