Michael M. Santiago
A group of five banks, including Goldman Sachs (NYSE:GS), HSBC Holdings (NYSE:HSBC), Barclays (NYSE:BCS), BNP Paribas (OTCQX:BNPQF) (OTCQX:BNPQY), are joining forces to adopt a tool that would minimize the risks of under-reporting clients’ stock positions, Reuters reported Tuesday, citing two sources familiar with the matter.
The move to streamline client disclosures on a global scale, which could help reduce costs and strengthen transparency, comes as lenders have been taking stake in regulatory technology (RegTech) to comply with securities regulations efficiently and less expensively.
One such rule includes a requirement whereby investors must report the securities they hold when certain thresholds are surpassed, the article pointed out.
The consortium led by the five lenders, dubbed Endoxa, is the first such initiative seeking to apply a common global approach to disclosing clients’ equity stakes, Pete Chisholm, global head of Position Regulatory Reporting, told Reuters.
In reassuring regulators the compliance rules will be applied consistently, the banks will collaborate with RegTech specialist Droit and a law firm to write a common digital machine-readable code for the Endoxa members to implement.