SecondFloor is a software service provider for risk and regulatory reporting solutions with a sound reputation as RegTech specialist for the financial services industry. SecondFloor offers scalable solutions that fit any size of company in the highly regulated financial sector.
The company is a member of the German cleversoft group. As a group, cleversoft services more than 300 financial institutions with 120 employees in offices across Europe.
In addition to Solvency II, SecondFloor provides a number of capabilities, including:
SecondFloor’s IFRS 17 solution provides functionality for General Model (BBA), PAA and VFA including CSM, discounting onerous contracts, disclosures and journal creation through its SaaS deployment.
SecondFloor includes all IORP II entry points; annual, quarterly and all the ECB variants. It facilitates data capture, creates readable reports, includes all the validations that are part of the taxonomy, and includes an up-to-date version of the XBRL to file with the regulator.
eFrame, by SecondFloor, is an easy-to-use and feature-rich cloud-based Solvency II solution for Pillar 1 & 3. The application supports the regular Pillar 3 supervisory QRT reporting, but it also covers all European national specific reporting. In addition, it caters for all Pillar 1 calculations and can be extended to cater for an organisation’s Internal Model.
Importantly, SecondFloor provide a managed service so users don’t have to worry about implementing taxonomy updates. When a new taxonomy is released, many Solvency II products require inhouse accountants and actuaries to visit the EIOPA or national authority website and gather all the facts and information necessary. However, eFrame is different – it’s homepage conveniently publishes the helpful updates related to the taxonomy and service, as well as the schedule for filing deadlines.
Most of the user activity itself takes place within eFrame’s Publish Events portal where users prepare filings for the different entities. eFrame makes navigating between entities easy, even supporting hierarchical organisation structures.
The Data Items area is where all the tasks occur. The items are customisable to reflect each organisation’s individual sequence of filing tasks. The typical sequence of data input, calculations, reports and outputs may be appended for SFCR narrative reporting. Icons indicate whether each item has been processed, its processing status and approval status.
A corresponding Excel data entry form exists for each input item in the Data Items area. eFrame users may download these templates and then use these as the primary source for data feeds, even linking the templates to their upstream data sources. Once populated, users may download the results as many times as necessary to pass the filing and business rules.
The Audit Events area provides a clear trail of all activity in chronological order. Users may open the templates available in this area as part of the data feed and data remediation process. The templates include detailed validation checks as prescribed by the respective taxonomies. Blocking and non-blocking errors are highlighted, with descriptions aligned to the taxonomy validation descriptions.
Another valuable feature is the ability to view the history of data input attempts. eFrame’s comparison workbench allows users to select any 2 combinations of data load attempts and compare each version side-by-side in Excel. Reviewers and approvers can use this to understand the data revisions that took place before signing off.
Pillar 1 calculation tasks are incorporated, and the tool can be extended to cater for an organisation’s Internal Model. The tool also includes “Non-SCR” outputs, which are effectively reconciling calculations e.g., to derive balance sheet asset category balances from the List of Assets. Users may choose to run individual calculation items or run all calculations with a single click of a button.
Once all data inputs are completed and calculations run, users can review their to-be submissions in an Excel report-book. The report landing page gives the users a really useful dashboard overview. Users can quickly browse through the various visualisations and quickly gauge whether or not the data appears reasonable. The book additionally includes a comprehensive list of all validation checks, all with relevant pass and fail indicators.
eFrame enforces the four-eyes principle i.e., it requires a review and approval by at least two different users. As soon as the second approval is provided, the respective XBRL file is automatically generated for the filing. Because eFrame caters for all European regulators, SecondFloor make a point of knowing all the little quirks between portals and as such the XBRL files are tailored for the specific regulators.
Finally, eFrame caters for the specific statements that are required for the SFCR. Tasks can be configured in the Data Items tab. Downloading an item will open the SFCR in Word, prepopulated with the statements, in a ready state for the overlay of the narrative.
In summary, eFrame by SecondFloor can be used across the entire European Solvency II market. The full taxonomy history is retained in the system and insurers can even prepare resubmissions on prior taxonomies.
The small details make for a very intuitive user journey within eFrame, in particular:
- the guidance on the landing page;
- the way that tasks are organised in the Publishing Events window:
- the detail and easy access to the audit logs: and
- the presentation layer in the Excel reports.
|Regular Supervisory Reporting||Y|
|Third Country Branches||Y|
|Lloyd’s of London||–|
|Bank of England IMO||Y|
|Bank of England NST||Y|
|Central Bank of Ireland NST||Y|
|Bermuda Monetary Authority||–|
|Data entry interface||–|
|Other text input||–|
|IBM Cognos Controller||–|
|Native user access||Y|
|Same sign-on (Directory Server Authentication)||Y|
|Multi factor authentication||–|
|Read / write restrictions by entity||Y|
|Read / write restrictions by activity||Y|
|Approver versus preparer||Y|
|SCR calculated for Standard Formula||Y|
|Validation control at point of entry||Y|
|Prebuilt QRT reports||Y|
|End user report-writer||Y|
|Data model customisation||Y|
|Narrative reporting (for SFCR and RSR)||Y|
|Third party analytical reporting||–|
|Data governance changes||Y|
|User training programme||–|
|User training materials||–|
|Administrator training programme||Y|
|Administrator training materials||Y|
|Solvency II functional support||Y|