On 13 June 2023, European Insurance and Occupational Pensions Authority (EIOPA) and European Banking Authority (EBA) published Data Point Modelling (DPM) Standard 2.0 which significantly enhances and evolves the current standard and is a key component of the EBA and EIOPA’s data dictionaries and a cornerstone of their reporting frameworks.
DPM: Bridging the gap between the reporting framework functionality and the XBRL technical design
Data Point Modelling (DPM) is a data-centric method (defined by ISO 5116) for organising business terms and concepts in a hierarchical order. It is used to present data in various reporting scenarios which derive from the underlying legal requirements in a business-friendly and non-technical manner. BR-AG tech experts are among the co-contributors who have vitally participated in the inception and development of Data Point Modelling from its very beginning.
Among current regulators, EBA and EIOPA were early adopters of the DPM approach in their ecosystem. The Data Point Model (DPM) Standard serves as a key component of their data dictionary to define concepts for the harmonised regulatory data requirements applicable to financial institutions in the European Economic Area (EEA).
In that sense, the DPM Standards support experts preparing or using regulatory reporting data by providing a structured representation of the information, encompassing all the business concepts and their relations, as well as validation and calculation rules.
Evolving from DPM 1.0 to DPM 2.0
In the last decade, the DPM methodology has successfully supported EBA and EIOPA in integrating their respective regulatory frameworks.
However, after years of implementation, the need for enhancements to the DPM Standard 1.0 has become evident in order to still fit the purpose of responding to changes and reducing costs. In response to the challenges posed by increased data volume, granularity, and complexity, the DPM Refit initiative has emerged as a collaborative effort aimed at harnessing the benefits of stronger collaboration and a higher level of harmonization.
Experts from both ESAs have been working on the DPM Refit project to evolve DPM Standard 1.0 to DPM Standard 2.0, which provides common data definition standards and tools. The enhanced DPM standard 2.0 published on 13 June 2023 is made available as a public good for the benefit of all stakeholders involved in the reporting process.
The source of the image.
Transition phase: Towards DPM 2.0 Refit and XBRL CSV
On June 14, representatives from ESAs during the EBA’s and EIOPA’s Meet-the-market Event at the 29th Eurofiling Conference also presented the timeline for the transition from old to new DPM (please see the image below).
The full version of the presentation is publicly available on the Eurofiling website.
EIOPA and EBA have also initiated the transition process (please see the timeline below) from the XBRL-XML reporting format to XBRL-CSV, to be completed by the end of 2025. Although, it is important to note that for EIOPA, XBRL-CSV is still not envisaged as mandatory.
What´s next?
Looking ahead, the DPM Standard will play a key role in facilitating a semantic integration of a single cross-sectoral dictionary across the whole financial sector. By offering a consistent approach for modelling reporting requirements, the Standard should pave the way for future integration of concepts and definitions (semantic integration) in a common data dictionary.
EBA and EIOPA, in their journey towards the DPM Refit project, will share more information on the next steps and organise specific events.
All the related documents, including DPM Standard 2.0 technical documentation, and useful links are available at the link.
How we can help?
- Our experts support financial data standardisation projects implementation, such as DPM, XBRL, XML, etc, advising on organizational & technical aspects for the assessments of the impact and providing a fit-for-purpose technological solution.
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