Self-service data governance – optimising how businesses handle data
Big data. Data management. Data quality. Data governance. These formerly big buzzwords on the data scene have gradually become staples of business vocabulary. But just because they have less hype surrounding them doesn't mean they're any less important. In fact, it's quite the opposite. Data is the driver behind critical business decisions - decisions that support the profitability and growth regardless of their size or industry. Whether it's the way banks track the spending and borrowing habits of customers to personalise communications with customers, or people in the insurance sector use data to eliminate inefficiencies and make savings through shorter claim cycles. And, as the availability and [...]
3 Essential Elements to Successful Data Governance
Data management is at the crux of modern businesses. It is the information that sits at the heart of decisions that will propel a company forward, and unlocks opportunities that could otherwise be overlooked. Yet, despite how crucial data is to ensuring growth in today's landscape, data mismanagement remains a significant concern. Actually, it isn't hard to see why - with the sheer volume of data being created, stored and shared on a day-to-day basis, it is easy to understand how keeping this information under control remains problematic. But just because it's problematic doesn't mean companies can sweep it under the rug. Data mismanagement doesn't only prevent [...]
Addressing the Issue of Data Mismanagement
The evolution of technologies and solutions dedicated to making the handling of data more efficient, more secure and more dependable has been pivotal in helping companies confidently make data-driven strategic decisions. Thanks to this, organisations that juggle a lot of data day-to-day, such as those working in the asset management industry, can feel more confident about the validity of the information they have available and its capacity to make a real difference moving forward. However, the threat of data mismanagement still holds firm in today's landscape. With such a swell of data being stored within modern workplaces, mistakes are likely to happen if effective precautions are taken. [...]
PRIIP KIDs are a go: what happens now?
At last, it's happening. Two years since consultations started — and over three years since the PRIIP regulation came into force — the European Commission has agreed a final version of the PRIIP key information document (KID). The asset management industry was never keen on the PRIIP KID requirements. And, given that it now has less than a year to make sense of a delegated act and 46 pages' worth of amendments to complex technical standards, it's safe to say not many people will change their minds. That said, regardless of your views on the matter, the new rules are coming into force from 1 July 2022. [...]
Is SFDR simply recoloring old businesses with new names?
At the beginning of August 2021, the United Nations Intergovernmental Panel on Climate Change released a milestone assessment that drew an “unequivocal” link between human activity and global warming. The Secretary-General of the UN made it clear that the conclusions of the report mean one thing...“code red for humanity.” Meanwhile, money managers are “flooded with cash” chasing ethical causes. According to Bloomberg Intelligence, in just four years the global market for ESG investing is set to exceed $50 trillion - more than 1/3 of global AUM. The question is how much of this is simply “greenwashing”? In spite of being ahead of the curve when implementing regulations [...]
5 ways your Asset Management firm will stay ahead of the game with AI and ML
Artificial Intelligence (AI) and Machine learning (ML) may seem both a distant and even scary prospect to some, straight out of a sci-fi movie plot, but in reality they’ve been around in our lives for quite some time now. Think Siri or Cortana, for example. A growing number of financial institutions are applying AI to their businesses via the back office and customer advice interactions to name just a couple. And, according to a report from the last World Economic Forum, 76% of banking CXOs agree that adopting AI will be critical to their organisation’s ability to differentiate in the market. Yet, the Asset Management industry seems [...]
A good run of bad luck: what does asset managers’ 2020 performance tell us about the industry’s future?
It's the year most industries reached never-before-seen lows, the world economy suffered the worst downward spiral since World War II, and things took such a left-field turn 'unprecedented' became the word of the year. Yet, against all odds, asset managers ended 2020 on a high. Despite the turbulent economic climate, total assets under management grew by 10% in Europe and 11% globally compared to 2019. But while this (and other numbers we'll get to in a bit) make it look like the industry is as strong as it's ever been, things aren't as positive as they seem at first glance. Here's what went well and what didn't [...]
The EC just published a finalised version of the PRIIPS KID
Asset Managers can now access a finalised version of the PRIIPS Key Information Document (KID), almost 2 years after the European Supervisory Authorities (ESAs) started consultations on how the PRIIPS KID should be amended. The EC has published a couple of days ago a delegated legal act and a A 46-page annex, amending the regulatory technical standards laid down in the Commission Delegated Regulation (EU) 2017/653. This addresses the underpinning methodology and presentation of performance scenarios, the presentation of costs and the methodology for the calculation of summary cost indicators, the presentation and content of information on past performance and the presentation of costs by packaged retail [...]
4 potential areas of financial regulatory reform to keep an eye on in the UK
In June this year, the UK Government published a report by the Taskforce on Innovation, Growth, and Regulatory Reform to pinpoint potential areas of regulatory reform. The idea behind generating this report was clear; the UK needs to find new ways of refreshing its approach to regulation now that they have left the EU. The UK must take advantage of their newfound regulatory freedom as well as providing support for innovation, and growth. The Taskforce on Innovation, Growth and Regulatory Reform organised dozens of roundtables and meetings with over 125 experts including entrepreneurs, businesses, trade bodies, academics, Think Tanks, and others who shared their insights and ideas. [...]
Are you certain you’re fully complying with MiFID II?
Asset managers have been living with MiFID II for close to a decade. But while that might seem like it's more than enough time to get to grips with the directive's admittedly complex requirements, it turns out many aren't as compliant as they thought they were. Or, at least, that's what the Financial Conduct Authority discovered, according to the findings of a review they published on 26 February 2021.Here's a look at the FCA's key findings, plus some tips on improving your firm's MiFID II compliance which you can start implementing straight away. What was the scope of the FCA's review?The FCA's review focused on product governance. In other words, [...]
A new EU directive will come into effect in August 2021. Here is what this will mean…
The EU Directive and Regulation, known as the “CBDF package”, or “the EU cross-border distribution of collective investment undertakings legislative package” was officially launched in July 2019. The Directive will impact all UCITS and Alternative Investment Funds (AIFs). It will come into effect on 2nd August 2021. The impetus behind the introduction of this new directive was the discovery, by the European Parliament, that the majority of investment funds were only registered for sale in their local markets. On top of that, only 37% of UCITS funds and 3% of AIFs were registered for distribution in more than three EU member states. The CBDF will seek to [...]
Some UK firms may have to comply with the UK and EU climate-rules in parallel.
After much anticipation, the FCA published its consultation (CP21/17) on climate-related financial disclosures and rules for UK asset managers at the end of June. Objectives include increasing transparency and competition as well as stimulating the flow of capital towards firms that are better managers of climate risks and opportunities. The FCA will ensure that the new requirements are in line with existing UK and international disclosure regimes, but firms operating cross-border in the EU will have to do an additional element of reporting. Who is in-scope of CP21/17 Firms managing investments and giving investment advice Certain life insurers and FCA-regulated pension providers referred to as ‘asset [...]
FCA gave UK non-complying asset managers up to 18 months to meet the reporting standards of their annual fees assessments
At the beginning of the year, the FCA reported that, of the 145 money managers in the UK, almost half failed to disclose their costs associated with individual funds in compliance with the FCA’s criteria. According to the FCA in their early July announcement, firms are still failing to assess whether their fund fees are justified by the value they give to investors. The FCA also points to the fact that some fund managers did not meet reporting standards. The major issue here lay in incomplete assessments, lack of performance details, costs and share classes, as well as a general misunderstanding of relevant fund rules. This report [...]
UK to extend the UCITS exemption by five years
At the beginning of June, HM Treasury confirmed in a press release that UCITS (Undertakings for the Collective Investment in Transferable Securities) funds will continue to be exempt under the UCITS Directive until 31 December 2026. In essence, this means that UCITS funds could still provide key investor information documents (KIIDs), as required by the UCITS Directive. In the EU, the same exemption is set to expire on 31st December 2021. The announcement of a short extension is expected, most probably 6 months. However, HM Treasury is about to review the UK disclosure regime which could lead to changes to the UK PRIIPs Regulation to be introduced [...]
Introducing: The zero-effort way to prepare for SFDR
While sustainable investing isn't a new idea — the first sustainable investment fund, Pax World, launched in 1971 — it has exploded in popularity over the past few years. Investors are rebalancing their portfolios to make them more sustainable in record numbers. But if sustainable investments are better for the planet and more resilient — in 2020, they outperformed traditional investments by an average of 0.9% — their popularity has also turned 'sustainability' into somewhat of a buzzword. As a result, legislators have stepped in to make sure that, when asset managers and other financial market players bill themselves and their products as sustainable, they really [...]
Data Reporting in Different Standards
Today we are pleased to announce an exciting new feature to Fundipedia; reporting standards. Timely and accurate regulatory reporting is a critical need for any financial institution. With the introduction of consortiums, such as, Openfunds and European Working Group (EWG), asset management reporting has started to become more standardised. However, many financial institutions still struggle to pull this data together. It can often involve time consuming manual processes and a massive burden on resource every month, quarter, and year-end. Incomplete, ambiguous or erroneous fund data can have serious negative consequences for financial institutions. The financial costs of these errors can be substantial. The new Fundipedia reporting standards [...]
Introducing Azure Single Sign-on (SSO)
Today we are excited to announce the launch of Azure Single Sign-on (SSO) with Fundipedia. With the growing rise in cybercrime, security has never been so important. The average person has over 30 logins, all requiring a password—these passwords are often reused, shared or become less and less complex as the number of passwords you need to remember grows. SSO can relieve the stress of password management as well as offering a host of other benefits for end users and IT managers. What is SSO? Single Sign-on (SSO) is a system that enables users to securely authenticate with multiple applications and websites by logging in only once, [...]