Large Challenges Await Financial Institutions: An Interview with Corinna Hedtke, Standard Chartered Bank

Large Challenges await Financial Institutions: An Interview with Corinna Hedtke, Standard Chartered Bank

Large Challenges Await Financial Institutions: An Interview with Corinna Hedtke, Standard Chartered Bank

April 5, 2017, 8:00 am EDT in AEOI Reporting, Blog

Financial institutions (FIs) will face major challenges when preparing for the Common Reporting Standard (CRS). Among the most significant of these will be compiling and organizing their data at the risk of failing to achieve compliance and suffering from damaged reputations.

According to Corinna Hedtke, Senior Manager for Client Tax Information Compliance, Europe at Standard Chartered Bank, FIs will have be to be highly flexible in terms of the internal resources they devote to complying with the new standard.

Corinna offered this advice to delegates attending the Summit for Asset Management (TSAM) event held in in London, where she co-hosted a workshop on AEOI along with Paul Banker of Sovos Compliance, who serves as General Manager – 1099, ACA, and AEOI Solutions.

Data Will Be The Biggest Challenge

Corinna warned delegates that data represented a ‘huge challenge’ for FIs preparing for CRS in terms of collecting the right amounts of data and having key data ready in time. This challenge will be compounded for those FIs collecting data from several jurisdictions, departments and business sections, since the data may live on different systems.

Allocating the Right Amount of Resource

Given the unique nature of the CRS, Corinna believes most FIs will find it very difficult to provide an appropriate level of resources and people. Her advice is that FIs must be ‘very flexible’.

The Biggest Impact of Noncompliance? Your Reputation

In the UK, HMRC ‘has made it very clear that the right process and procedures need to be in place as well as the right governance programmes,’ Corinna said. Making senior management criminally liable under the the impending Corporate Criminal Offence will also act as a further incentive to make sure FIs fully comply with the CRS.

Take Action

View the full video interview of Corinna’s advice to the industry below.

Learn more about the Sovos AEOI Solution.

Paul Banker

About Paul Banker

Paul has more than 24 years of experience within the tax information reporting industry. Paul’s previous leadership positions at Sovos (formerly Convey) include VP of Client Management and VP of Operations. Paul was formerly a member of IRPAC (Information Reporting Program Advisory Committee) that provides constructive guidance on matters of mutual concern to both the industry and the IRS and is currently a member of the CRS Business Advocacy group that works with the OECD on matters related to the automatic exchange of information (AEOI).Paul holds a BA in Accounting from the University of St. Thomas in Minnesota.