Addition offers business process outsourcing for FTK
The Financial Assessment Scheme (in Dutch: Financieel Toetsingskader/FTK) is the supervisory regime that applies as from 1 January 2007 to the financial position and financial policy of pension funds and insurance companies. Addition Knowledge House (www.addition.nu) offers business process outsourcing for FTK processes using DEX Regulatory Suite.


Pension funds have obligations ranging from a short to a very long duration. The FTK must guarantee that the commitments made on the basis of the pension plan to the participants can be honored. The FTK must therefore ensure that pension funds do not take more risk than they can bear and don't pass on the negative consequences of too much risk to future generations.

 

FTK reporting
In order to be able to enforce the FTK-regulation the Dutch National Bank has defined an extensive set of reports. Market parties have to report about their financial position on a regular base. The follwing reporting subsets have been defined:

  • Funding ratio reports
  • Investments
  • Investments with a geographical breakdown
  • Premiumreports
  • Regulations
  • Recovery plans
  • Feasability test
  • Quarterly reporting for pension funds

 

FTK process
The following diagram shows the flow of information between the different participants in the FTK process.

FTK Context

  • Investment managers send information about investment funds to custodians
  • The custodians sends the FTK investment reports to the pension fund
  • The pension fund sends the FTK reports to the actuary
  • The actuary performs actuarial calculations and sends the result back to the pension fund
  • The pension fund sends the FTK reports to the regulator
  • The actuary sends an actuarial statement to the regulator

 

DEX Regulatory Suite for FTK
In order to support the FTK process DEX Data Explorers offers DEX Regulatory Suite for FTK. DEX RS generates regulatory reports using the DNB specifications.

DEXDNBMenuFTK

 

DNB has published a datapointmodel containing all definitions of the FTK reports. A datapointmodel is a database which contains all necessary information to generate the reports. DEX RS uses the information in the datapointmodel to generate the reports, validate the outcomes against the DNB validation rules and generate the XBRL interfaces. Since the reports are generated according to the DNB standards the reports are always compliant and conform the latest standards.

Below an example of an FTK report generated by DEX RS is shown.

FTKreport1

 

DEX Data Explorers maintains the definitions of the reports according to the regulator standards. When updates to the standards are submitted, you as a customer will receive an update on the set of reporting definitions.
DEX Regulatory Suite offers the following functionality:

  • Reports generated according to the latest standards
  • Analysis tools for mapping of own data sets with the DNB FTK-model
  • Validation of the data according to the validation rules defined by DNB; this gives you the possibility of validating the reports before you send them in
  • XBRL generation in accordance with the standards of DNB
  • Processing of the feedback of DNB
  • Automatically generated documentation
  • Workflow support

 

Workflow support
DEX RS offers workflow integration. The DEX RS functionality has been integrated with workflow systems. Users are guided through the regulatory process; manual steps are integrated with automated steps. All actions are logged.

FTKWorkflow

 

Design your own reports
On top of delivering the required regulatory reports DEX RS offers you the possibility of designing you own reports. This way you can reuse the data you use for regulatory reports for e.g. internal reports.

FTKexpression

 

Available solutions
DEX Regulatory Suite supports the following regulations:

  • CRD iv (COREP, FINREP, Funding Plans, Asset Encumbrance, Supervisory Benchmarking Portfolio)
  • AnaCredit
  • Residential Real Estate
  • Deposit Guarantee Scheme
  • MIFID ii
  • SFTR
  • Social Economic Reports
  • Dutch Digital Reporting (DRA)
  • Solvency
  • OIRP ii
  • Country Risk
  • Financial Assessment Scheme (FTK)
  • Tax reporting (VIA, Fatca)

 

Addition Knowledge House and DEX Regulatory Suite
Addition Knowledge House (www.addition.nu) is a reseller of DEX Regulatory Suite. Addition Knowledge House delivers the following services with regards to DEX Regulatory Suite:

  • Implementation supportAddition
  • Maintenance
  • Business process outsourcing

Addition Knowledge House offers the possibility to outsource large parts of the FTK process.

Addition can offer the following services using DEX RS:

  • Collect the information of the investment managers
  • Send information the actuary and retrieve their information
  • Generate the FTK reports and distribute them to interested parties
  • Create the XBRL and send it to the regulator.

Each situation is unique. Addition Knowledge House will be happy to discuss how we can support your process in an optimal way.