Circular on the expectations with respect to quality | KPMG | BE
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Circular on the expectations with respect to quality of reported prudential and financial data

Circular on the expectations with respect to quality

On 12 October 2017, the National Bank of Belgium (NBB) issued the Circular NBB_2017_27 on the expectations of the NBB on data quality of the prudential financial reporting issued by, amongst others, financial institutions, insurance companies and payment institutions.

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Circular on the expectations with respect to quality of reported prudential and financial data

Expectations of the NBB on data quality

The quality of the data should be verified against the following criteria:

  • accuracy
  • reliability
  • completeness
  • consistency
  • plausibility
  • timeliness

In this circular the NBB also defined its prudential expectations regarding internal organization related to data quality. These expectations are described in detail based on three principles:

  • Governance: a solid and documented governance framework for the prudential reporting to the NBB including, amongst other, roles and responsibilities and the provision of sufficient human resources;
  • Technical capacity: an adequate data-architecture and IT infrastructure ensuring, amongst others, that instructions are always respected and timely detection and remediation of errors and inconsistencies;
  • Processes: documentation of existing processes including, amongst others, the involved persons with their roles and responsibilities and the key controls in place.

In a first stage the companies subject to this Circular have to prepare for the Q4 2017 prudential reporting a self-assessment to which extent the company already meets the expectations of the NBB as described in the Circular. As from the Q2 2018 prudential reporting, it is expected that the companies comply with the provisions of the Circular.

Impact on the external auditor

In his Q4 2017 report to the NBB on the periodical financial information, the external auditor evaluate the results of the above mentioned self-assessment. The data quality controls as referred to in this Circular will be tested for the first time by the external auditor as part of the review procedures on the Q2 2018 periodical financial information. 

How KPMG can help

KPMG can help you with the elaboration of your holistic data quality governance framework, target state data architecture and IT infrastructure design, documentation of existing data quality processes and controls, as well as with the requested data quality self-assessment and the resulting data quality action plan.

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