How to Prepare and Evaluate Your SCV Effectiveness Report: A Practical Checklist for Financial Firms

Part 4: SCV System Information

This section forms a crucial part of the SCV Effectiveness Report. It includes various components aimed at providing a comprehensive overview of the deposit taker’s Single Customer View (SCV) system and its implementation, ensuring compliance with the PRA’s SCV requirements.

• File Generation: The deposit taker must provide the date when the last full SCV file was produced and the time it takes to generate a full SCV file. Additionally, the date of the last full Exclusions View file production and the time for generating it must be provided.
• System Information: Demands a detailed description of the SCV system and its implementation. This encompasses details on the software or systems used for SCV file production, management of specific account types or data sets by third parties, source, date, and rate of exchange rates applied to SCV and Exclusions View files, provision of keys and codes for SCV and Exclusions View files, and processes enabling identification of eligible deposits and accounts held on behalf of beneficiaries.
• The Compensation Limit: Requires the confirmation of the applied compensation limit and an explanation of how the SCV system identifies any portion of an eligible deposit that exceeds the coverage level for compensation.
• Procedures and Controls: Necessitates a description of the procedures and controls in place regarding the production of SCV and Exclusions View files. This includes details on secure storage and management of key person dependencies.
• Testing of the SCV System: Requests a description of the testing undertaken to assess the robustness of the SCV system. This involves various aspects such as preparation of the SCV in stressed scenarios, reconciliation with core systems, and testing to prevent duplicate entries
• Dependencies on Third Parties and Exclusions View File Production: Stipulate the provision of information regarding third parties relied upon for SCV file production, as well as details of the exclusion file production process if different from the SCV.
• Treatment of Legally Dormant Accounts: Involves complying with the Dormant Banks and Building Societies Accounts Act 2008, which defines such accounts as those with no transactions for fifteen years. Financial institutions may transfer the balance of these accounts to a reclaim fund for dormant accounts, as mandated by the Act.
• Ongoing Maintenance: Addresses the deposit taker’s plans to upkeep the SCV system. This involves maintaining an accurate list of keys or codes for the SCV and exclusions, implementing processes to verify member eligibility, seeking relevant modifications and waivers when needed, and integrating new products and systems into the SCV system. 
• Ongoing Assurance: The board of directors’ method of ensuring the SCV system’s compliance with the PRA’s requirements is to be indicated. They must outline how they will guarantee the continued satisfaction of the PRA’s SCV requirements. If audit assurance work is planned, details on the dates and scope of the intended work should be provided.
• Audit Section: The deposit taker needs to state whether the SCV Effectiveness Report has undergone review by external auditors, and if so, provide the findings of that review. Any attached documents should be clearly labeled with the Firm name, FRN number, SCV primary contact name, and document title.
• Material Changes: Lastly, the section concludes with a requirement to declare any material changes to the SCV system since the previous SCV Effectiveness Report.

This comprehensive review of the SCV system and its various components, alongside an emphasis on accuracy and completeness, ensures that compliance with the PRA’s SCV requirements is thoroughly documented and communicated.