Regulatory Reporting Assurance

Overview 

Regulatory capital, liquidity and other core prudential ratios remain of critical importance for banks and their stakeholders, and the completeness and accuracy of regulatory reporting remains a key area of focus for the PRA and other Regulators. Against this backdrop, the current BEIS proposals on Restoring Trust in Audit and Corporate Governance are also likely to drive further demand for Regulatory Reporting Assurance.

Key drivers for obtaining independent assurance over regulatory reporting include:

While the BEIS White Paper does not propose a mandatory audit approach for Risk Weighted Assets on the basis of complexity and cost:benefit considerations, it is clear that the Audit & Assurance Policy (AAP), will increase Audit Committee and Board focus on the benefits of obtaining assurance over regulatory reporting and disclosures, within the context of the proposed Audit and Assurance Policy framework.
 

How can Deloitte help?

As part of our cross service line proposition on Regulatory Reporting Assurance, our Assurance specialist team provide a range of support and assurance services working with business owners, risk and control functions, Internal Audit, Boards and Audit Committees, to increase confidence in the quality of regulatory information and provide benchmarking of regulatory reporting frameworks.

Our core Regulatory Reporting Assurance services, which can be tailored according to individual requirements, include:

Gap Analysis / Health Check

• Impact assessments of new regulatory calculations and regulatory rules interpretations
• Review of governance, processes and controls against regulatory expectations and industry best practice.

Review & Recommend

• Review of compliance with capital, leverage, large exposures and other core Pillar 1 requirements, including regulatory reporting and disclosures

Reasonable Assurance

• Reasonable Assurance over capital, liquidity and other regulatory ratios, regulatory returns and Pillar 3 disclosures
• Section 166 Reasonable Assurance

Our modular approach to assurance over individual process components and/or outputs is summarised below, and provides a flexible approach to specific assurance engagements, including wider programs of assurance activities on a risk-based/rotational basis as part of a multi-year program.