Decoding NFRR

Financial institutions rely upon regulatory and management reports to meet regulatory obligations, manage risks, and effectively run their business. NFRRs are mandated by laws, rules, and regulations and include reporting centered on complex transactional, operational, and corporate governance activities and disclosures not covered through typical income statements, balance sheets, and supplemental schedules.

Depending on their product and geographical scope, financial institutions may have thousands of applicable NFRR obligations scattered across all regions/countries and subject to disparate local, state, and national regulatory authorities.

With this scale comes complexity – NFRRs often span all lines of business (LOBs) and control functions, represent a diverse and complex set of reporting topics, and involve immense operational challenges due to varying report frequencies and local language requirements. The NFRR landscape can be generally grouped into three primary categories:

• Transaction monitoring reports focused on trade, credit, and market activities occurring with the institution (e.g., Consolidated Audit Trail, Electronic Bluesheets, CFTC Real-Time Reporting)
• Operational and risk management reports that enable regulators to evaluate the operational processes and risk exposures of an institution (e.g., financial crimes, tax withholdings, IT events, open interest, margins, large positions)
• Corporate social responsibility and sustainability reports focused on an institution’s activities to promote and comply with corporate social responsibility objectives and initiatives (e.g., political activity & campaign finance, energy consumption & conservation, inspection certifications)