Lombard Risk Management plc (Lombard Risk), a leading UK provider of end-to-end European Banking Authority reporting automation, and automated XBRL tools in this market, has comprehensive support for multiple versions of XBRL taxonomies at the same time.
As the EBA’s requirements continue to be rolled out, this is a mandatory functional must-have.
The operational reporting requirements of firms under COREP and FINREP regimes are further complicated by the phased introduction of additional reporting challenges for firms subject to new parts of the regime including Asset Encumbrance reporting. These changes, and taxonomy adjustments from the regulator to deal with inconsistencies, mean that firms have to cope with the live environment which will include more than one taxonomy. Operationally, this means any XBRL submission, or more importantly resubmission, made by any firm has to be in the format that was applicable at such time.
Firms can be confident that the XBRL solution provided by Lombard Risk will automatically know which version of the taxonomy to use when compiling the regulatory transmission. Unlike other systems which may require users to set version toggles, the Lombard Risk REPORTER product suite simply allocates the correct taxonomy version automatically based on the date of the data being submitted. This approach also ensures that Lombard Risk clients may test new XBRL taxonomy versions before they are live simply by deploying the date functionality.
James Phillips, Lombard Risk’s Regulatory Strategy Director, commented on the simplicity of the solution: “What I find rather appealing is the transparency to the user. REPORTER can hold as many taxonomies as are needed for current or historical resubmission purposes, yet there is no client action required as this is all transparent–the user only needs to select the regulatory submission and the date to which it relates, and the correct XBRL taxonomy will be used.”
Phillips further commented: “It’s also worth noting that Lombard Risk is the only supplier in the market with a free-of-charge tool, “XBRL-Checker”, which checks the XBRL produced (whether this is from our system or not) against the taxonomy, and also visualizes regulatory XBRL in human-readable format. Again these tools facilitate handling multiple taxonomies.”
Lombard Risk REPORTER is a fully automated end-to-end regulatory reporting suite which provides support for all aspects of the reporting cycle, from data collection to report submission. The handling of multiple transmission technologies at the same time is a typical challenge which the product has had in scope for many years, providing support for regulators which have mixed submission methods, or as in this case, there is more than one version in use for various reasons at any one time.