FSCA COMMUNICATION 33 OF 2023 UNVEILS OMNI-CBR DEVELOPMENTS
The Financial Sector Conduct Authority (FSCA) has recently released Communication 33 of 2023, offering a comprehensive update on the cross-sectoral Conduct of Business Return (Omni-CBR) planned for financial institutions. Here's a breakdown of the key highlights:
Purpose of Communication 33 of 2023:
• To provide an update on the development of Omni-CBR for financial institutions.
• To give an overview of the stakeholder consultation process for the first draft of the Omni-CBR template.
• To give details on envisaged next steps for the roll-out and implementation of Omni-CBR based on extensive feedback.
Background:
1. FSCA Communication 22 of 2021 (GENERAL) - December 22, 2021:
• This Communication provided an initial update on Omni-CBR development.
• It further signalled the FSCA's intention to conduct a robust consultation process starting in 2022.
2. FSCA Communication 16 of 2022 (GENERAL) - June 8, 2022:
• This Communication included a detailed Roadmap for Omni-CBR roll-out and shared the first draft of the Omni-CBR template for stakeholder consultation.
• It furthermore outlined the objectives, outcomes, and milestones for phased implementation over multiple years.
3. Post-Roadmap Developments:
• Since the June 2022 publication, extensive consideration of stakeholder comments has taken place.
Next Steps:
1. Draft Omni-CBR Template Changes:
• The template is undergoing significant changes based on voluminous and critical feedback.
• These changes will inter alia include a substantial streamlining of data points requested.
2. Engagements with Prudential Authority:
• This is an ongoing process to ensure alignment and mitigate potential duplication of regulatory reporting requirements.
3. Consultation Survey and Industry Pilot:
• The FSCA is finalising a consultation survey to understand potential operational and systems impact.
• A survey is envisaged to run parallel to the industry pilot of the revised reporting template.
4. Review of Implementation Timelines:
• The original timeline from the Roadmap is under review and will be extended.
• A detailed breakdown of extended timelines for Phase 3 and Phase 4 will be communicated in 2024.
5. First Half of 2024 Targets:
• Industry engagements will continue, in order to clarify issues raised until April 1, 2024.
• A revised, streamlined version of the draft Omni-CBR template is aimed to be published by July 1, 2024.
• An industry survey on potential operational and systems impact is aimed to be released by July 1, 2024.
6. Possible Revisions and Industry Pilot:
• These timelines are subject to possible revision in 2024 based on further refinement and harmonization efforts.
• The planned industry pilot will be launched in the second half of 2024, based on survey outcomes.
7. Progress Updates:
• Further updates on progress related to the described activities will be provided by July 1, 2024.
