what is regulatory reporting

Regulatory reporting is the process of documenting information about a companys activities and operations to demonstrate that they have met the relevant compliance requirements. In the financial industry, regulatory reporting is a critical activity for financial institutions and requires a concerted effort from risk, finance, and IT. The data collected from these regulatory reports facilitates early identification of problems that can threaten the safety and soundness of reporting institutions and ensures timely implementation of legal corrective actions. Regulatory reports are filed with relevant authorities, such as the ESMA and the FCA, and include financial information or other supervisory information. The most common regulatory reports are the Consolidated Reports of Condition and Income (call reports) and other Federal Financial Institutions Examination Council (FFIEC) financial reports. Proper regulatory compliance reporting is vital to helping ensure business transparency and protecting a firms reputation. Automation and technology-enabled data management are critical elements of an agile, robust reporting function that will allow financial services companies to be more proactive as new requirements arise.