The UK’s departure from the European Union has fundamentally reshaped the regulatory landscape for financial institutions, particularly those active in the securitisation market. As the UK established its own regulatory frameworks, distinct from those of the EU, financial institutions operating across both jurisdictions have faced the unprecedented challenge of dual compliance. Navigating this regulatory divergence requires not only a deep understanding of evolving rules but also the technological agility to adapt at pace. Publicis Sapient’s partnership with European DataWarehouse (EDW) offers a blueprint for success in this new era, demonstrating how digital transformation can turn compliance challenges into opportunities for growth and innovation.
Prior to Brexit, financial institutions could rely on a harmonised set of securitisation regulations across the EU, overseen by the European Securities and Markets Authority (ESMA). The UK’s exit, however, introduced a new layer of complexity. The Financial Conduct Authority (FCA) established its own securitisation regulations, which, while initially similar to ESMA’s, have begun to diverge in both technical and operational requirements. For organisations like EDW—already established as the Eurosystem’s first central data repository for asset-backed securities (ABS)—this meant:
The risk of non-compliance, operational inefficiency, and increased costs loomed large for any institution unable to adapt quickly and effectively.
Publicis Sapient, with its deep expertise in regulatory technology and cloud engineering, played a pivotal role in enabling EDW to meet these dual compliance demands. The solution was anchored in several key innovations:
At the heart of the transformation was a Microsoft Azure-based big data platform. This cloud-first approach enabled real-time processing, validation, and storage of billions of loan-level data records. The platform’s scalability ensured that EDW could rapidly adapt to evolving requirements from both the FCA and ESMA, while maintaining high availability and robust security for sensitive financial data.
The platform was purpose-built for flexibility, featuring multi-instance capabilities that allowed EDW to efficiently manage separate regulatory regimes for the EU and UK. By reusing up to 80% of the core solution architecture, EDW accelerated its time-to-market for the UK repository, ensured operational consistency, and achieved significant cost efficiencies. This modular approach also means that future regulatory changes—whether in the UK, EU, or other jurisdictions—can be accommodated with minimal disruption.
Publicis Sapient’s agile methodologies were critical in responding to frequent regulatory updates and technical changes. Through rapid iteration and continuous delivery, the platform remained compliant and user-friendly, even as requirements evolved. Automated DevOps pipelines and infrastructure-as-code practices further enhanced operational efficiency, enabling rapid deployment and consistent governance.
Advanced front-end technologies and automated data validation pipelines provided a seamless experience for issuers, investors, and regulators. Robust validation and quality assessment tools ensured that all submissions met the FCA’s stringent standards, supporting transparency and due diligence in the UK securitisation market.
On January 17, 2022, EDW was officially registered by the FCA as one of the first UK Securitisation Repositories, having already achieved ESMA designation in the EU. This milestone enabled EDW to:
The transformation delivered by Publicis Sapient and EDW has set a new benchmark for regulatory reporting in the post-Brexit era:
For organisations facing similar dual compliance challenges, several lessons emerge from the EDW transformation:
Publicis Sapient’s role in the digital transformation of EDW’s regulatory reporting platform demonstrates its unique ability to deliver complex, cloud-based solutions tailored to the evolving needs of the financial sector. By combining deep regulatory expertise, advanced engineering, and agile delivery, Publicis Sapient empowers financial institutions to turn compliance challenges into opportunities for innovation and growth.
As the UK and EU continue to define their regulatory identities post-Brexit, Publicis Sapient stands ready to help financial institutions navigate change, ensuring they remain compliant, competitive, and future-ready in a dynamic market.
Ready to transform your regulatory reporting capabilities for a dual compliance world? Connect with Publicis Sapient’s experts to discover how agile, cloud-native solutions can future-proof your business and drive sustained compliance and growth.