Newsletter March 2019

COMPIRICUS Newsletter March 2019

Dear Sir or Madam,

“Nothing in the history of life is more constant than change”. This inspiration of the English scholar Charles Darwin (1809 to 1882) by no means exclusively applies to evolution. No matter where we look, we recognize development and change – often combined with the necessity to attentively evaluate what need for action results from our daily business. In this newsletter we therefore examine the following topics:

  • The successful introduction of SAP FAM/TRM on the S/4 HANA platform
  • The run-off market which is now also established in Germany
  • The reform of the reference interest rates and the impacts on SAP systems and processes

COMPIRICUS successfully introduces SAP FAM/TRM on the S/4 HANA platform

In January 2019, with the help of COMPIRICUS AG as SAP implementation partner, the first phase of one of the biggest SAP S/4HANA-FAM/TRM introduction projects worldwide was completed – with the successful go-live of 70 companies and more than 150 billion assets under management. The new investment accounting platform was realized as Green Field Approach within three years and not only offers the latest SAP technology but also a very high degree of automation for investment accounting processes. Consequently, numerous interfaces to fully automated systems of master and transaction data were realized, for instance to a front office system with the help of the COMPIRICUS product Financial Adapter®.

Individual requirements of clients that are not covered by the SAP standard could, amongst other things, be realized with the help of COMPIRICUS products, respectively through CDP developments by COMPIRICUS, so that – for instance, reporting master data are now fully automatically inferred and data reconciliation between supply and reception systems is completely automatically implemented.

The client now consequently has a modern investment accounting platform, which fulfills its requirements and is now able to accommodate numerous new business transactions worldwide as well as special funds in additional phases and is in particular prepared for the requirements of IFRS 9.

You should also use COMPIRICUS AG’s know-how as an experienced SAP TRM/FAM/CML implementation partner

+49 211 64949-300 oder Thomas.Buettner@compiricus.de

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Viridium takes over Generali Leben’s inventory – the run-off market has established itself in Germany

The taking over of Generali-Leben’s inventory, with its more than 4 million clients, by the Viridium Group has shown that inventory management has also arrived on the German market. In the course of the past year, apart from the Viridium Group, several companies have been established which concentrate on the run-off of insurance inventories.

The key for this sector is an efficient process model and the suitable system support, not only for the liabilities side of the balance sheet with the administration of the insurance contracts but also for assets side in the capital investment and the management of liquid funds.

Here, with more than 20 years’ experience in mapping asset and treasury management processes in diverse SAP system solutions, COMPIRICUS provides a deep understanding for the specific requirements of the position management sector.

Have we raised your interest? Please simply contact us:

+49 211 64949-300 oder Thomas.Buettner@compiricus.de

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Trouble for interest rate derivatives and interest products – impacts of the EU Benchmark Regulation on EONIA and EURIBOR

Since January 1, 2018 the Benchmark Regulation has come into force within the EU – adopted by the European Commission as a reaction to the interest manipulations of the past. This also places high requirements on the currently still very fundamental reference rates EONIA and EURIBOR in the interest sector, which are currently only allowed to be used on the basis of a transitional regulation which applies until 2020. In response to this, the ECB announced that it would introduce an own reference interest for overnight business transactions (ESTER) from October 2019. Furthermore, the British supervisory authority FCA has announced that from 2022 it will no longer request LIBOR reference values from participating banks, which is generally interpreted as the end of the LIBOR.

According to experts, with regard to reference interest rates in future these changes will lead to a substantial loss in importance of the term market (for instance 3-month EURIBOR) and consequently a concentration of standard contracts for interest products and interest derivates exclusively on the overnight reference interest rate.

The diagram shows that the switch of contracts, for instance from term 3-months EURIBOR to the overnight interest (today EONIA – in future ESTER) means an increase in the number of interest calculation flows from one flow (at the beginning of the periods) to approx. 60 flows (during the entire period). This leads to considerable additional expenditures in mapping the data in the treasury and inventory systems of the market participants and, for instance with regard to the fixing processes, in the case of future considerably more frequently necessary EONIA or ESTER swaps. Since currently up to now no valid statements about dealing with ongoing financial transactions on the basis of EONIA and EURIBOR have been made, there is also a risk of a switch from existing transactions to the new reference rates.

Thanks to its many years of experience with a great number of financial products, COMPIRICUS is well acquainted with mapping the new requirements. Whether this involves the automated overnight fixings, the setting of new calculation methods or the efficient adjustment of your inventory to interest transactions – we are glad to advise you regarding the changing of your processes and SAP systems:

+49 211 64949-300 oder Fabian.Geue@compiricus.de

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Children’s charity organization SOS-Kinderdorf is favorite recipient

There was a choice of 6 aid organizations for assigning donation vouchers for the COMPIRICUS Charity campaign at the end of 2018. For every allocated voucher we donated 10 euros to the chosen organization. The result was overwhelming!

Because of your help, our 6 charity organizations hence received a total donation sum of 4,000 euros. Many thanks to all of you who participated.

We would now like to tell you the result of the donation allocation:

SOS-Kinderdorf e.V: 35,2%
Herzenswünsche e.V.: 26%
Ärzte der Welt e.V.: 14,1%
Amnesty International: 11,5%
Diakonie Katastrophenhilfe: 6,6%
Deutsches Rotes Kreuz: 6,6%


Will we see each other?

COMPIRICUS is regularly represented at national and international trade fairs. Take the opportunity to meet us personally:

  • May 22-24, 2019
    31st SLG Finance Symposium in Mannheim, Germany
  • June 2-5, 2019
    IASA in Phoenix, Arizona, USA
  • June 4-5, 2019
    Working meeting of the User Group "Accounting - Basic questions and practical implementation" in Stuttgart, Germany
  • July 2-3, 2019
    Trade Fair Congress “Finances and Risk Management” in Leipzig, Germany
  • September 17, 2019
    SLG - The Future of Cash Management in Mannheim, Germany
  • October 20-23, 2019
    AFP in Boston, USA