ICCOFIDO: Incremental Compliance Checking of Financial Documents

AFRICA: Automated Financial Regulations Change Impact Analysis

L. Briand (SnT), D. Zetzsche (FDEF), S Abualhaija (SnT), M Bodellini (FDEF), D. Bianculli (SnT) University of Luxembourg

Project Description

Project Description

Financial regulations oblige funds to produce and amend various documents, which fall under regulatory supervision.

ICCOFIDO aims to accelerate compliance checking of financial documents by developing a tool for making the process incremental:

After a new document version is produced, ICCOFIDO will enable to perform the minimal set of compliance checks required by the changes

Project Objectives and Methods

Devising a tool-supported approach for:

O1. Automated identification of document metadata changes

Identifying which key data or information has changed in the document and needs to be reverified

O2. Impact analysis of metadata changes on compliance rules

Determining the subset of rules, the evaluation of which is affected by the changes in the document

O3. Incremental compliance verification

Checking only the meaningful set of compliance rules over the changes

Expected Impact

Nowadays, compliance checking of financial documents is a time-consuming, resource intensive and static activity

Instead of performing compliance checking over an entire document, ICCOFIDO would allow:

- Checking selected sets of rules on an incomplete draft document

- Checking only the revised portions of a document

Potential Partners

- Regulators who are responsible for validating the submitted documents

- Management companies during document authoring and in-house compliance checking activities prior to (re)submission

AFRICA aims at detecting the change in financial regulations and analyzing in a (semi-)automated manner the impact of this change on FinTech-related software, directly affecting the compliance of a financial institutions

Project Objectives

Objective 1. (Semi-)automated detection and analysis of financial regulations changes over time.

Objective 2. (Semi-)automated impact analysis of regulations changes on fintechrelated software artifacts, consequently recommendation of adaptation to remain compliant.

Impact

Developing a foundational framework for change impact analysis re financial regulation

Preparing a model for informing financial institutions on future regulatory change

Technically assessing the impact on regulation on an institution's core business

Potential Partners

Public sector (e.g., CSSF, ECB and EMSA)

Private sector, including traditional banks, investment banks, management companies, and FinTech companies