New RPA Solution from IHS Markit Addresses MiFID II Challenge for the Buyside

New RPA Solution from IHS Markit Addresses MiFID II Challenge for the Buyside
29.06.2017 01:15 pm

New RPA Solution from IHS Markit Addresses MiFID II Challenge for the Buyside

Compliance

IHS Markit, a world leader in critical information, analytics and solutions, today announced the launch of RPA Manager, a comprehensive service helping asset managers acquire investment research in compliance with MiFID II.

To reduce the potential for conflicts of interest, MiFID II requires asset managers to separate payments for research from trading commissions due to brokers that provide research.  If an asset manager intends to use its clients’ assets to fund research payments, the manager must disclose research fees, allocate those fairly among client accounts, and receive client approval for research expenses.  Payments must be made from segregated research payment accounts (RPAs) created by the asset manager.   

The new RPA Manager solution provides an online toolset to assist firms in adhering to MiFID II requirements, including research budget calculation, tracking and allocation, managing funding of the RPA through direct debit or commission sharing agreements, reconciliation, reporting and document management.  The solution will also soon integrate with the SWIFT network and help firms manage payments through a single interface for sending payment instructions to and receiving activity notices from the bank of their choice. 

“Commission unbundling creates a series of operational and procedural challenges for asset managers.  Solutions like RPA Manager will help trading, operations and compliance teams ensure they are synchronized and positioned to comply with MiFID II requirements related to investment research,” said Spencer Mindlin, analyst at Aite Group specializing in capital markets technology.  

“Unlike other major regulations in capital markets, which have largely impacted sellside institutions, MiFID II imposes significant burdens on asset managers,” said Michael Aldridge, managing director at IHS Markit.  “With RPA Manager and integrations to our other Brokerage and Research Services tools, we can offer firms an easy to deploy, scalable solution for administering research payments, tracking the quality of research, accounting for commissions and more.” 

RPA Manager integrates with other research management services from IHS Markit, including Broker Vote and Commission Manager, to provide a holistic research, commission and payment management solution.  

“Asset managers are bracing for an increase in operational intensity driven primarily by the looming MiFID II deadline,” said Tom Conigliaro, managing director at IHS Markit.  “We are actively collaborating with customers on the design and implementation of a holistic workflow solution that will bridge our multiple services to help fund managers administer newly regulated activity, such as managing commissions and tracking and evaluating research.”  

For asset managers seeking to outsource the administration of RPAs, IHS Markit plans to offer a service that can perform due diligence, governance and reconciliation activity on their behalf.  

Related News

CISI and Association of Professional Compliance Consultants new deal boosts business and professional development opportunities for members

The Chartered Institute for Securities & Investment (CISI) and the Association of Professional Compliance Consultants (APCC) are delighted to announce a strategic... Read more »

74% of UK Electronic Money Institutions (EMI) Brands are still not PSD2 Open Banking compliant

Nine months after the regulation went live, nearly three-quarters of EMI Brands in the UK have yet to implement a PSD2 Open Banking compliant interface.

What are the... Read more »

Ingenico launches SCA Accelerator suite to help with PSD2 compliance

Ingenico Group (Euronext: FR0000125346 - ING), the global leader in seamless payments, today unveils its ... Read more »

NICE releases integration of trading recording and Microsoft Teams to drive digital transformation

Hoboken, N.J., NICE (NASDAQ: NICE), a leading provider of financial communication compliance solutions, today announced the release of the integration of the... Read more »

Britons Embrace Biometrics But Over Half Will Abandon Applications If Not Fully Digital

Since the start of the COVID-19 outbreak, much focus and value has been put on contactless and online interactions – particularly in the financial sector. New research... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel