KPMG’s Regulatory IT service line provides strategic and technical regulatory and compliance solutions to help financial services providers anticipate and manage their regulatory risk.
Our teams support clients in their needs to meet regulatory requirements and expectations in the most pragmatic and efficient way possible by strengthening enterprise-wide compliance programs, implementing effective governance and risk management frameworks. On top of that they enhance internal controls, and help create a culture of risk management and compliance.
Our experienced professionals include former regulators, supervisors, examiners, IT-specialists and compliance practitioners.
Our service offering
KPMG brings a range of services in Regulatory IT:
- Data Analytics
- Monitoring & planning for upcoming regulations
- Develop tools
How we can help
KPMG’s Technology team assists clients manage a range of key issues, including:
- Automatic Exchange of Information - AEOI reduces the possibility for tax evasion and provides for the exchange of non-resident financial account information with the tax authorities in the account holders’ country of residence. The purpose of the CRS is to obtain financial account information from financial institutions and automatically exchange that information with other jurisdictions on an annual basis.
- In duplum – The In duplum rule states that at no given point in time can the unpaid arrear interest exceed the amount of the capital. It was developed in response to considerations of public interest, and seeks to protect borrowers from exploitation by lenders who permit interest to accumulate unchecked. It also has the effect of encouraging lenders to exercise their rights to be repaid, promptly and without delay.
- International Financial Reporting Standard 9 – IFRS 9 was introduced by the International Accounting Standards Board (IASB) and wants to address the reporting of financial instruments at fair value in profit and loss. The final version was completed in July 2014 and the final version is effective for annual periods beginning on or after 1 January 2018. IFRS addresses the accounting for financial instruments and was accelerated in response to the financial crisis in 2008, when invested parties highlighted:
- The timelines of recognition of expected credit losses
- The complexity of multiple impairment models
- The use of the banks own credit
- Learnerships – The learnership allowance provides an incentive to employers for creating jobs and developing skills by offering an additional tax allowance in terms of section 12H of the Income Tax Act. The learnership allowance is available (in addition to the salary cost and other related tax deductible costs) to qualifying learners. The additional allowance applies to any registered learnership agreement entered into on or after 1 October 2001 but before 1 October 2016.
- Market Conduct Continued - Market conduct considers conduct of companies and conduct impacting clients with a focus on fairness and integrity in the financial sector. The Financial Service Board has worked to improve customer focus in particular with respect to governance, product features and disclosure. Marker conduct is monitored by FAIS, Banks Act, NCA, FMA financial markets Act, the JSE and PFA Pension funds Act • Mis-selling - Mis-selling is the selling of an unsuitable product or giving inappropriate advice to a customer. Misconduct was recently identified in the Australian Vehicle financing industry, the UK banking sector and a South African furniture retailer. In all cases it was found that organizations sold Consumer Credit Insurance (CCI) that is sold with, or linked to, consumer credit, to clients that did not seek or qualify for the product, thus selling an unsuitable product.
- Retail Distribution Review (RDR) - The RDR was initiated by the Financial Services Board (FSB) in an attempt to ensure that customers receive fair outcomes when purchasing financial products. The first phase in South Africa is scheduled for 2016.