Elixirr and Kaizen, the regulatory reporting assurance experts, have announced a new partnership, which will deliver a complete end-to-end regulatory reporting remediation service for financial institutions. We will collaboratively offer clients greatly-improved assurance testing, governance and support on their trade and transaction reporting remediation projects.
This is a significant milestone in responding to the increasing levels and complexity of regulation faced by the industry. Kaizen is unique in its approach to compliance assurance, checking every single item of transaction data for accuracy and completeness, while we provide practical and hands on support to resolve the reporting issues highlighted by the Kaizen assurance assessment.
Data quality has been a continual problem under the original MiFID reporting regime1 but the increased complexity of EMIR and MiFID II reporting obligations means that this will be even harder to achieve. At the same time, regulators’ capacity to identify issues has widened, and the UK’s Senior Managers’ Regime puts additional pressure on individual managers within firms to ensure they are reporting correctly.
Firms which do not fully address reporting issues are at risk of multi-million pound fines, reputational damage, and the cost of internally remediating the problem, which is often significant. In an industry first, Kaizen’s technology solution, combined with our remediation skills, will identify reporting issues quickly and ensure they are resolved and replayed, in a cost-effective, seamless way.
Barry Lewis, Partner at Elixirr who led the formation of the partnership, says,
“Kaizen have developed a service that is invaluable to the financial services industry, so we’re delighted to partner with them in such a value-added offering. This partnership means we can combine robust data quality assurance tools with the analysis and remediation expertise of our team, and help our joint clients respond even more effectively to the increasing needs for reporting compliance.”
Dario Crispini, CEO and Founder of Kaizen, says,
“I see the partnership as an important step forward in compliance evolution. By combining the skillset and expertise of the two companies we are able to provide clients with greatly enhanced confidence and accuracy when reporting to regulators. Elixirr has a strong reputation, attention to detail and unwavering passion to really help firms succeed and we trust them to provide the best remediation solutions for the companies we work with. The market is already responding well, and I have full confidence that this partnership will quickly benefit our clients and go from strength to strength in the months and years to come.”
Recently awarded the Queen’s Award for Enterprise in innovation, one of the UK’s highest business accolades, Kaizen has combined data science with leading regulatory expertise to develop ReportShieldTM, a quality assurance service that provides firms with a complete set of controls to ensure the accuracy, timeliness and completeness of their reporting data. ReportShield tests all of a firm’s records, avoiding the shortcomings of other approaches which test only small data samples.
We have a proven track record of working with financial services firms internationally to help them identify issues and achieve full and sustainable reporting compliance.
Collaboration and open innovation are at the heart of everything that we do. We’re proud to partner with Kaizen and look forward to working together.
1 Kaizen’s analysis of transaction reporting fines issued by the FCA found that 65% of transactions were incorrect, and that firms were unaware of these inaccuracies. See infographic here.