The Financial Market Authority Liechtenstein (FMA) is responsible for the stability of the Liechtenstein financial institutions and financial market as well as the protection of clients. The regulatory reporting system is on the brink of revolution: XBRL is a new technical standard that can be used for the whole reporting process, it can replace existing standards and eliminate manual processes.
The FMA decided to carry out the European capital requirements directive CRD IV (banks) and Solvency II (insurance) with XBRL. The FMA uses AMANA XBRL Portal, the reporting platform based on the AMANA XBRL Engine to process and analyse the XBRL filings. AMANA und PwC have won the FMA’s RFP in 2015 and have successfully implemented around 200 FMA’s requirements to the solution.
The banks supervised by the FMA have to send the European reporting CRD IV (COREP) in XBRL to the FMA, the insurance companies submit the Solvency II returns. The reporting requirements are defined by the European Banking Authority [EBA] and the European Insurance and Pension Authority (EIOPA). What makes this process special is that the reporting requirements are available as XBRL taxonomies. An XBRL taxonomy includes not only data points to be reported and their definitions (DPM), but also reporting forms and extensive validation rules.
The first challenge for the XBRL projects is to understand and establish ‘the new world’.
‘With its expertise in XBRL, AMANA has contributed greatly to the successful implementation of our reporting system’, says Roger Guntli, responsible Project Manager at the FMA.
The generic XBRL Processor is necessary to make the implementation of the reporting requirements technically flexible. Only then the XBRL taxonomies can be used easily without the need to adapt the reporting software. The AMANA XBRL Portal uses the AMANA XBRL Engine in such a way that the FMA can create new taxonomies at the click of a mouse. The portal is ready for processing and analysis of filings and no software adjustments or manual implementations of the reporting forms or validation rules are necessary.
‘Due to its flexible architecture and open interfaces, the AMANA XBRL console has been comfortably integrated into our existing environment and thus we can ensure a completely electronic reporting process ’, emphasises Roger Guntli.
The high level of automation is very important for the FMA: the XBRL Portal automatically rejects XBRL filings that contain validation errors. In addition to that, the filings are immediately converted to the (human-readable) Excel format and the key figures are calculated, so that the users can analyse the filings. The portal is ‘XBRL Taxonomy driven’ – all visualisations and key figures are processed based on the XBRL Taxonomy, so that no software adjustments are necessary.
‘Thanks to the AMANA XBRL console, we managed to meet the regulatory requirements of EBA’, adds Markus Meier, Banking Division, Head of the Supervision Section of the FMA.
Since 2016 the FMA has successfully processed all XBRL filings of the financial intermediaries using the AMANA solution and submitted them to the European supervisory authorities.
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