Posted on 11 Sep 2017
Asset managers risk missing MiFID II and PRIIPs deadline
Asset managers may miss the deadlines of their insurance and wealth management partners for MiFID II and PRIIPs data delivery as they’re too focused on the end of year regulatory starting point and ignoring full preparation time, according to panellists and contributors at Silverfinch’s recent conference.
The majority of asset managers are collating their data to be delivered to distributors for the January introduction of MiFID II and PRIIPs next year, leaving no time for distributors to road-test and finesse their own data processes. Industry experts recommend that insurers and wealth managers need the relevant information at least two months ahead of the regulatory deadline in order to prepare their own internal operations.
Fund managers may also struggle in amassing the correct data as it often comes from a multitude of external and internal sources. A failure to present distributors with data before the end of October could hamper the sales process and expose distributors to both regulatory and legal challenges if it means that end investors are left without adequate information when the new rules come in. As a result, this could lead distributors to having to remove certain products from their sales offering.
“You cannot reasonably expect people to get data at the end of December and then be ready to give that data out to clients the next day," said John Dowdall, Silverfinch managing director. “These distributors are potentially dealing with hundreds of manufacturers so the key to success will be standardising the data exchange, and getting that done with a couple of month’s leeway.”
A survey at the conference revealed that most asset managers are committed to providing data within the industry standard EMT and EPT format and have commenced their projects to organise the distribution of key information along their distributions channels. However, panellists warned that using this standard may come to nothing if the data cannot be shared with the rest of the industry to make the deadline.
Silverfinch is the leading regulatory data exchange. Part of the MoneyMate Group and the Compliance Solutions Strategies (CSS) family of companies, Silverfinch launched its Solvency II look-through platform in 2014 and quickly expanded into other regulations such as VAG, GroMiKV and PRIIPs to help its clients address their client reporting requirements under a consolidated standard framework.
About MoneyMate Group
The MoneyMate Group, which specialises in fund data technology, works with stakeholders across the investment lifecycle to achieve better access to data through three distinct business lines. Along with Silverfinch, a utility for “Secure Data Sharing”, the MoneyMate Group also incorporates Accudelta, a managed data service provider, which works with asset managers and their service providers to support distribution and client driven regulatory reporting and Longboat Analytics, a market data vendor, which captures investment data at market level and adds value through the provision of analytic tools and website solutions.
MoneyMate Group is headquartered in Dublin, Ireland, with offices in London, New York, Boston, Milan, and Stockholm.
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