New lending reporting solution from Northern Trust
18 March 2011 Chicago
Image: Shutterstock
Northern Trust has created a report to assist insurance companies with regulatory filings on securities lending programmes. The “Schedule DL” report provides Northern Trust asset servicing clients with information formatted to fulfill National Association of Insurance Commissioners (NAIC) reporting requirements for securities lending reinvestment collateral detail.
"Insurance companies that participate in lending programmes as a way to enhance returns on investment portfolios face new regulatory burdens intended to manage risks and enhance transparency,” said Sheldon Woldt, head of the Insurance Client segment of Northern Trust's asset servicing business. “As custodian and securities lending agent, we are positioned to help our insurance clients fulfill reporting requirements with automated solutions. The new ‘Schedule DL’ report demonstrates Northern Trust’s commitment to assisting insurers meet the challenges of changing regulatory requirements."
Schedule DL, effective December 31, 2010, requires insurance companies to show detailed holdings of reinvested collateral on securities loans. The detail required by the rule is not typically available in insurance investment accounting systems. Northern Trust’s solution combines information from its securities lending database with its insurance investment accounting capabilities to assign Schedule D classifications and NAIC ratings received from the Securities Valuation Office (SVO). The data is presented in a format that is compatible with the NAIC formatted file requirements.
“Without the Schedule DL from Northern Trust, we would need to manually collect collateral reinvestment detail and present it in the statutory annual and quarterly statements in the NAIC required format,” said Randy Johnson, senior vice president-investments, Texas Mutual Insurance Company. “Northern Trust provides a report that saves us time and makes it easier for us to meet our regulatory reporting requirements.”
"Insurance companies that participate in lending programmes as a way to enhance returns on investment portfolios face new regulatory burdens intended to manage risks and enhance transparency,” said Sheldon Woldt, head of the Insurance Client segment of Northern Trust's asset servicing business. “As custodian and securities lending agent, we are positioned to help our insurance clients fulfill reporting requirements with automated solutions. The new ‘Schedule DL’ report demonstrates Northern Trust’s commitment to assisting insurers meet the challenges of changing regulatory requirements."
Schedule DL, effective December 31, 2010, requires insurance companies to show detailed holdings of reinvested collateral on securities loans. The detail required by the rule is not typically available in insurance investment accounting systems. Northern Trust’s solution combines information from its securities lending database with its insurance investment accounting capabilities to assign Schedule D classifications and NAIC ratings received from the Securities Valuation Office (SVO). The data is presented in a format that is compatible with the NAIC formatted file requirements.
“Without the Schedule DL from Northern Trust, we would need to manually collect collateral reinvestment detail and present it in the statutory annual and quarterly statements in the NAIC required format,” said Randy Johnson, senior vice president-investments, Texas Mutual Insurance Company. “Northern Trust provides a report that saves us time and makes it easier for us to meet our regulatory reporting requirements.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
