Turin
03 April 2017
Reporter: Stephanie Palmer

Bloomberg wins Italian reg mandate


Italian banking group Intesa Sanpaolo has selected Bloomberg to provide accounting data for compliance with the International Financial Reporting Standard 9 (IFRS 9).

The new IFRS 9 framework means financial institutions have to check whether an asset’s contractual cash flows are solely payments of principal and interest (SPPI), in order to determine whether the asset has non-basic features, and whether it is presented at a fair value.

It also necessitates more descriptive data in order to come to an informed conclusion on how securities should be classified and valued.

Intesa Sanpaolo will use Bloomberg’s IFRS 9 SPPI data, part of its Regulatory and Accounting product suite, to determine how securities should be classified under the new framework.

Chris Casey, global head of regulatory and reference data at Bloomberg, said: “The IFRS 9 SPPI requirements present a tremendous challenge because they require a data-intensive review of investment and loan portfolios to determine how securities should be treated.”

He added: “To comply with confidence, organisations need high-quality instrument data and a comprehensive methodology that allows them to accurately and defensibly perform this analysis on an ongoing basis.”

Nicola Torresani, head of debt pricing and analysis at Intesa Sanpaolo, commented: “Using Bloomberg’s IFRS 9 SPPI in our accounting process will help us classify portfolio securities accurately and consistently across our organisation.”

“We also expect it will save us time and resources required to evaluate how our investments should be treated under the new standard. Bloomberg delivers high-quality data in a form we can readily use to assess the impact of the new rules on our accounting, reporting and risk management processes.”

The new IFRS 9 guidelines are intended to improve transparency and consistency in financial instrument accounting practices. They will come into effect in January 2018.

More regulation news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
GCF: Concerns linger around MiFID II compliance
06 December 2017 | London | Reporter: Becky Butcher
With only 28 days left to go before MiFID II comes into effect, less than half of Global Custody Forum attendees feel they will be compliant in time
EEA members’ supervisory weaknesses exposed in ESMA review
30 November 2017 | Paris | Reporter: Jenna Lomax
ESMA said those NCAs who did not identify good practices, would be consulted by ESMA on how they can make improvements in time for the MiFID II deadline
Deutsche Borse approved by BaFin as ARM and APA
30 November 2017 | Frankfurt | Reporter: Jenna Lomax
The approval means that Deutsche Borse regulatory reporting hub can offer ARM and APA services from 3 January 2018
NEX Regulatory Reporting made trade repository under EMIR
24 November 2017 | London | Reporter: Jenna Lomax
The trade repository, which will be based in Stockholm, Sweden, will prepare NEX for its trade operations post Brexit
EU Commission opens consultation of SFTR TR fees
21 November 2017 | Paris | Reporter: Drew Nicol
UK-based trade repositories may be forced to shoulder additional third-party recognition fees to operate under EU regulatory frameworks post-Brexit, according to proposed EU Commission rules
LEIs offer major cost savings, says OFR
17 November 2017 | Washington DC | Reporter: Drew Nicol
The OFR noted that early academic studies found that cost savings associated with adoption of the LEI approached $1 billion annually
MTS and UnaVista to collaborate for SFTR
13 November 2017 | London | Reporter: Jenna Lomax
The collaboration means that firms trading on MTS’s new global collateral management segment will be able to use UnaVista’s trade repository to trade under SFTR
More regulation news