Software provider Goldensource is tapping into Brexit uncertainty with the release of new data sets aimed at helping banks prepare for changed regulatory demands and compliance requirements in the event of a no-deal exit from the EU.

With the UK’s planned departure scheduled for 29 March, the software firm says its Brexit-specific data platform will enable banks and financial institutions to report to the Financial Conduct Authority (FCA) and the European Securities and Markets Authority (ESMA) at the same time in the event that the UK leaves without a transitional deal in place.

If a political agreement isn’t struck, no new UK-related trade or transaction data would be received or processed by ESMA, while the FCA would have to stop sending data to ESMA.

The platform upgrade would allow for the replication of datasets like MiFID II in the short-term, and the addition or editing of datasets as the two watchdogs diverge on regulation in the long-term.

Volker Lainer, vice president of product management and regulatory affairs at GoldenSource, said: “It’s no secret that the FCA and ESMA have contrasting outlooks when it comes to regulating financial markets, in the event of a no-deal or even a soft Brexit, regulatory reporting requirements will start to diverge, so firms need to get to grips with precisely what needs to be reported on to whom, and when.

“Only through a centralised data management platform can financial institutions ensure they’re not just avoiding both non-compliance and costly over-reporting after the initial grace period, but also prepare themselves for any future regulatory changes across other third-countries,” he added.

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