Regulatory data exchange Silverfinch has added a MiFID II data solution to its datamodel in response to its clients’ changing regulatory requirements.
From 3 January 2018, MiFID II product governance requires a step change in how fund distributors and their asset management partners communicate with each other.
In addition to increased transparency regarding investment target markets and costs and charges, manufacturers of products will need to collect information from their distribution network confirming if products have been sold to a suitable investor. This will require closer communication between asset managers and their distributors.
Silverfinch’s MiFID II data model has two streams, tailored for asset managers and distributors respectively. The asset manager solution enables asset managers to build the European MiFID II template and from this then aggregates the data from different sources and securely and efficiently delivers the required data to distributors.
The distributor offering uses this standard template to ensure that distributors have the full information to meet their MiFID II requirements and then facilitates the return delivery to asset managers of sales suitability reporting based on target market criteria.
John Dowdall (pictured), managing director of Silverfinch, says: “With the start date for MiFID II rapidly approaching, we have seen a marked increase in requests for a solution from both the asset management and distributor community. Our MiFID II offering ensures that all parties will be able to meet their regulatory obligations in a secure environment whilst still enabling asset managers to efficiently distribute their funds and distributors to meet their clients’ investment needs.
“MiFID II looks set to be the largest shake-up the industry has seen in many years. Whilst improved communication and increased transparency will certainly benefit the investor community as well as the end investor, the sheer volume of data required means the industry cannot wait and needs to start to prepare now.
“We look forward to helping firms develop and implement their MiFID II solution and, as the regulation evolves, will continue to develop our model to ensure that asset managers and their distributors can operate successfully in a post-MiFID II world.”
