Capital-adequacy filing and assessment system and method

• US 20070271195A1
• Filed: 05/16/2006
• Published: 11/22/2007
• Est. Priority Date: 05/16/2006
• Status: Active Grant

• Current Assignee: Financial Industry Regulatory Authority Incorporated
• Original Assignee: Financial Industry Regulatory Authority Incorporated
• Inventors: Wollin, Elizabeth Anne, Moon, Jung Hun Kim, Belcher, Sherilyn Smith
• Granted Patent: US 7,792,731 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 10/0631 Resource planning, allocation, distributing or scheduling for enterprises or organisations
• CPC Class Codes: G06Q 10/06395 Quality analysis or management
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Systems and methods of capital-adequacy filing and assessment for determining compliance with capital-adequacy rules include an authorized-entity computer and a processing computer in electronic communication with the authorized-entity computer. Such systems and methods can include an analysis-rule-configuration component, a data-reception component and a rules engine.

Claims

1. An automatic method for determining compliance with capital-adequacy rules comprising:

configuring a set of analysis rules;

receiving, from an authorized entity at a data processing system, electronic financial data relevant to the capital of an authorized entity;

analyzing the received financial data by the data processing system using the configured analysis rules to determine whether the capital of the authorized entity is in compliance with the capital-adequacy rules; and

providing a notification of noncompliance when the capital of the authorized entity is not in compliance with the capital adequacy rules.

2. The method of claim 1, wherein configuring the set of analysis rules includes

selecting the analysis rules from a library of analysis rules.

3. The method of claim 1, configuring the set of analysis rules includes

creating the analysis rules using a rules generator.

4. The method of claim 1, wherein configuring the set of analysis rules includes

designating a threshold value for the analysis rules.

5. The method of claim 1, wherein analyzing the received data includes

determining whether an existing net capital of the authorized entity is greater than a required net capital for the authorized entity.

6. The method of claim 1 wherein analyzing the received data includes determining an erosion of excess net capital.

7. The method of claim 6, wherein determining an erosion of net capital includes

calculating excess net capital for a current period and a prior period;

and

comparing the excess net capital value for the current period with the excess net capital value for the previous reporting period to see if there is a loss of excess net capital greater than a predetermined threshold.

8. The method of claim 1, wherein analyzing the received data includes

determining whether an authorized entity is experiencing losses.

9. The method of claim 8, wherein analyzing the received data further includes

determining the rate of losses if the authorized entity is experiencing losses

10. The method of claim 9, wherein determining the rate of losses includes

determining an average monthly income for at least one previous reporting period;

and

dividing the current excess net capital by the average monthly income if the average monthly income is negative to estimate the time for the authorized entity to deplete excess net capital.

11. The method of claim 1, wherein analyzing the received data includes

determining whether the authorized entity has identified a new revenue type.

12. The method of claim 1, wherein the received data includes equity data, and wherein analyzing the received data includes

determining whether the equity data reported by the authorized entity reconciles.

13. The method of claim 12, wherein determining whether the equity data reported by the authorized entity reconciles includes

adding data representing the current net income to data representing the total ownership equity from a prior reporting period;

and

determining whether the resulting sum equals data representing the current total ownership equity.

14. The method of claim 1, wherein receiving the electronic financial data includes

receiving data required to be filed with a regulatory authority.

15. The method of claim 1, wherein analyzing the received data includes

generating an exception condition if the authorized entity does not comply with capital-adequacy rules.

16. The method of claim 15, wherein analyzing the received data further includes

associating information relating to the exception with the generated exception.

17. The method of claim 16, wherein the associated information includes a status of the exception.

18. The method of claim 16, wherein the associated information includes an identifier of an analyst responsible for the exception.

19. The method of claim 16, wherein the associated information includes a record of actions taken relating to the exception.

20. The method of claim 16, further including

tracking the exception using the information associated with the exception.

21. The method of claim 1, wherein providing a notification includes

generating a report with the results of the analysis.

22. The method of claim 21, wherein the report is customized to include user-designated results.

23. The method of claim 1, wherein receiving electronic financial data includes

receiving electronic forms that include financial data.

24. A capital-adequacy filing and assessment system for determining compliance with capital-adequacy rules comprising:

an authorized-entity computer; and

a processing computer in electronic communication with the authorized-entity computer including

an analysis rule configuration component that configures analysis rules for analyzing financial data relating to capital-adequacy rules,

a data reception component for receiving financial data relating to capital-adequacy rules from the authorized-entity computer, and

a rules engine to analyze the financial data relating to capital-adequacy rules received from the authorized-entity computer using the analysis rules configured by the analysis configuration component.

25. The capital-adequacy filing and assessment system of claim 24, wherein the analysis rule configuration component configures analysis rules by selecting an analysis rule from a library of analysis rules.

26. The capital-adequacy filing and assessment system of claim 24, wherein the analysis rule configuration component configures analysis rules using a rules generator to create analysis rules.

27. The capital-adequacy filing and assessment system of claim 24, wherein the analysis rule configuration component configures analysis rules by designating a threshold value for use in an analysis rule.

28. The capital-adequacy filing and assessment system of claim 24, wherein the analysis rules include threshold values configurable by a user.

29. The capital-adequacy filing and assessment system of claim 24, wherein the analysis rules are based on capital-adequacy rules set by a regulatory body.

30. The capital-adequacy filing and assessment system of claim 24, wherein the analysis rules determine whether an existing net capital of an authorized entity is greater than a required net capital for the authorized entity.

31. The capital-adequacy filing and assessment system of claim 24, wherein the financial data received by the data reception component from the authorized-entity computer includes data to be filed with a regulatory authority.

32. The capital-adequacy filing and assessment system of claim 24, wherein the rules engine generates an exception condition if the financial data does not comply with capital-adequacy rules.

33. The capital-adequacy filing and assessment system of claim 32, wherein the exception is associated with information relating to the exception.

34. The capital-adequacy filing and assessment system of claim 33, wherein the information comprises a status of the exception.

35. The capital-adequacy filing and assessment system of claim 34, wherein the information includes an identifier of an analyst responsible for the exception.

36. The capital-adequacy filing and assessment system of claim 35, wherein the information includes a record of actions taken relating to the exception.

37. The capital-adequacy filing and assessment system of claim 24, further comprising

a report generation component for generating a report with a result of analysis performed by the rules engine of the financial data relating to capital-adequacy rules.

38. The capital-adequacy filing and assessment system of claim 37, wherein the report is customized to include user-designated results.

39. The capital-adequacy filing and assessment system of claim 24, wherein the financial data relating to capital-adequacy rules received by the data reception component from an authorized-entity computer includes electronic forms that include financial data.

40. The capital-adequacy filing and assessment system of claim 24, wherein the rules engine determines an erosion of excess net capital.

41. The capital-adequacy filing and assessment system of claim 40, wherein the rules engine calculates excess net capital for a current period and a prior period;

and compares the excess net capital value for the current period with the excess net capital value for the previous reporting period to see if there is a loss of excess net capital greater than a predetermined threshold.

42. The capital-adequacy filing and assessment system of claim 24, wherein the rules engine determines whether an authorized entity is experiencing losses.

43. The capital-adequacy filing and assessment system of claim 42, wherein the rules engine determines the rate of losses if the authorized entity is experiencing losses

44. The capital-adequacy filing and assessment system of claim 43, wherein the rules engine determines an average monthly income for at least one previous reporting period;

and divides the current excess net capital by the average monthly income if the average monthly income is negative to estimate the time for the authorized entity to deplete excess net capital.

45. The capital-adequacy filing and assessment system of claim 24, wherein the rules engine determines whether the authorized entity has identified a new revenue type.

46. The capital-adequacy filing and assessment system of claim 24, wherein the received data includes equity data, and wherein the rules engine determines whether the equity data reported by the authorized entity reconciles.

47. The capital-adequacy filing and assessment system of claim 24, wherein the rules engine adds data representing the current net income to data representing the total ownership equity from a prior reporting period;

and determines whether the resulting sum equals data representing the current total ownership equity.