RegTech

MiFID 2 

(Markets in Financial Instrument Directive)

Otap Projects work with bank compliance departments to design and implement MiFID solutions to ensure that Banks adhere to relevant regulations.

We designed and implemented a Suitability and Appropriateness solution for a Private bank in T24.

The solution covers execution only and Portfolio management client accounts.  Risk levels are assigned to Customers, Portfolios and Securities. Asset types are segregated by complexity. Customer knowledge of complex and non-complex instruments is assessed.

 

The suitability and appropriateness of the instrument is assessed and a result is provided online at the time of order entry.

A client appropriateness report is produced for all trades to be sent to clients, prior to the client providing consent for non-appropriate trades. Appropriate overrides are implemented to prevent unsuitable trades being entered into T24 / OMS.

We also designed and build reports to assess if client holdings and transactions are suitable. These can be run online in real time and where needed extended to a web browser.

EMIR

(European Market Infrastructure Regulation )

Since the beginning, the compliance with EMIR requirements has been a challenge for financial institutions and it still is. OTAP helps clients comply with EMIR provisions by building solutions in T24 where the products may be booked.

Otap has excellent knowledge in the Derivatives module of T24, as well as Foreign exchange and Swaps.  We have automated reporting for exchange traded derivatives, including Interest rate futures, index futures, commodity futures.  The reporting was built in T24, and converted to an FIS /XML file and sent to the regulator.

 

GDPR

(General Data Protection Regulation)

What is GDPR?

GDPR is a legal framework that sets guidelines for the collection and processing of personal information of individuals within the European Union (EU). The GDPR sets out the principles for data management and the rights of the individual, while also imposing fines that can be revenue-based. The General Data Protection Regulation covers all companies that deal with data of EU citizens, so it is a critical regulation for corporate compliance officers at banks, insurers, and other financial companies. GDPR came into effect across the EU on May 25, 2018.

 

The GDPR regulation came into force this year.  It imposes strict requirements on how banks can use client data.  To be compliant with GDPR it is important to conduct a review of your Banking Systems (including T24) to assess who has access what personal data is kept by the bank, and who has access to that data. Personal data includes any customer identifiable data.

Data in the customer file (name, address, telephone number, ID card numbers, sex, account numbers, client numbers, mnemonics, etc.

Processes need to be designed, to allow for client requests, such as a client requesting his right to be forgotten.

Data Portability.  Clients will have the right to extract their data and take it to a new financial institution.

In the future, banks will be able to extract information from multiple sources to allow for decisions relating to credit scoring, and holistic portfolio management.

Noncompliance with GDPR can lead to fines of up to 4% of revenue.  It’s therefore critical for banks to invest to ensure their core banking systems are compliant.