Just as proper regulatory reporting can make a business, improper reporting can break it. Among the many consequences, improper regulatory reporting can lead to reputational damage in the public eye, buyers and investors losing confidence in the firm, and costly legal issues.
What is Regulatory Reporting?
Regulatory reporting is where businesses submit their regulatory report to a relevant authority, such as the ESMA and the FCA.
What is a Regulatory Report?
A regulatory report is how a company demonstrates that they have met the relevant compliance requirements.
To ensure clarity, it is important that there is a universal alignment on standards. There is no use in having ESMA EU standards differ from those in the rest of the world.
Why is Regulatory Reporting needed?
Proper regulatory compliance reporting is vital to helping ensure business transparency. FCA regulatory reporting and ESMA regulatory reporting, among others, is important in establishing mutual trust between competitors that their rivals are adhering to the proper standards.
Why is there a need for regulation in financial reporting?
It is important that financial reporting is regulated properly. This eliminates the opportunities for unscrupulous businesses to gain an unfair advantage by bending the rules.
3 benefits of Regulatory Reporting?
- It helps to protect a firm’s reputation
- Regulatory reporting is vital to ensuring business transparency. It also assists in protecting a company’s reputation in the eyes of the public. After all, a business’s success is based on its public image. This is especially the case today, as people expect companies to adhere to ethical business practices rather than just focusing solely on their profits. - The visible accountability helps to reassures investors
- Reassuring investors is integral to a business’s success. After all, they need investor capital to grow their business.
- It can also help to reassure the biggest investor of all – those who seek to purchase the company. The last thing potential buyers want is to purchase a firm without visible accountability. Not only will this damage their future success, but it will also lead to the buyers being tainted by association. - It saves businesses a lot of money
- With such strict regulations surrounding business practices, firms that don’t ensure that they adhere to current standards risk running into legal issues. These are notoriously costly. In extreme cases, this can even lead to investors pulling their resources out of the firm - leading to its collapse.
The impact of improved Regulatory Reporting
Improved regulatory reporting makes it harder for firms to escape the repercussions of harmful business practices.
This is not just good at stopping unethical actions - it also ensures that ethical businesses guarantee that their practices are fit for the modern market. These businesses may uncover potential blind spots in their reporting procedures that had not been noticed before.
What can Apex Group do for you?
At Apex Group, we understand that there are multiple factors for your business to consider regarding regulatory reporting, especially if you operate in multiple jurisdictions. That’s why our Regulatory Reporting services cover a wide range of needs, from FATCA Services to CRS Services, Annex IV Reporting and helping our customers with Form PF requirements.
By choosing Apex Group, you can ensure that you will be provided with a regulatory reporting solution that fits your needs, wherever you are based.
