Tony Sodhi article: Avoiding the pitfalls of BCBS239 compliance


The Securities Lending Times have featured an article by Tony Sodhi (Principal Consultant, GFT) entitled ‘Avoiding the pitfalls of BCBS239 compliance’ in their ‘A focus on regulation’ monthly segment. Tony analyses the challenges domestically significant investment banks (D-SIB) can expect to face in their BCBS239 compliance programmes and how they may be able to learn from the globally significant investment banks (G-SIB) experiences along the way.

The Basel Committee on Banking Supervision recently publishing its second report in January 2015 charting the progress made by G-SIBs in their attempts to comply with its principles for effective risk data aggregation and risk reporting. Tony states that the spotlight is now shifting to the D-SIBs and their respective efforts towards compliance. He argues that “If they have not already started, D-SIBs should start working on their BCBS239 compliance strategies immediately if they are to avoid the difficulties experienced by their G-SIB.”

Tony also believes there is an opportunity for D-SIBs to learn from the activity already undertaken by the G-SIBs and that “Starting from scratch and with three years to implement, D-SIBs should be able to take advantage of the experiences and lessons learned by the G-SIBs - many of which were learned the hard way. They can avoid the costly mistakes of many G-SIBs by using their time and budgets more efficiently and ensuring that appropriate tools, data models, processes and other accelerators are utilised.”

Though with many elements of their programme still unclear, Tony states that the greatest challenges for D-SIBs is the challenge for “Whether they can act quickly enough, embrace BCBS239 and take full advantage of opportunities it presents.”


To view Tony’s article in full in the Securities Lending Times, please click here.