FSA SII progress review findings – More Data Governance required

February 2011 – UK Financial Services Authority publishes findings of their Solvency II Internal Model Approval Process (IMAP) thematic review. 

Worryingly, but not surprising are the findings that data management, data quality and data governance are areas requiring most attention: I include specific paragraphs below:

3.2 Data management appeared to be one area where firms still have comparatively more to do to achieve the likely Solvency II requirements.

3.15 Data quality: Few firms provided sufficient evidence to show that data used in their internal model was accurate, complete and appropriate.

6.10 We witnessed little challenge or discussion on data quality at board level. We expect issues and reporting on data governance to find a regular place within board and committee discussions. Firms need to ensure that adequate and up-to-date quality management information is produced. It is important that the board has the necessary skills to ask probing questions.

See the full report at:

http://www.fsa.gov.uk/pubs/international/imap_final.pdf