Editorial: A problem solved

In creating Turn – a platform designed to standardise the copious data requirements under MiFID II – the funds industry has found something like a Holy Grail: a utility built not so much from blockchain, but from the willingness of competing firms to cooperate.

Fund operations have long suffered from commercial interests that have hindered standardisation and efficiencies, and resulted in a proliferation of ‘solutions’.

Turn and some of its participants say hundreds of thousands of pounds/euros can and already have been saved on data management related to fund distribution under MiFID rules, thanks in part to Turn’s centralised, non-profit model. Turn also has Priips data costs in its sights.

The utility stands to reduce asset management costs and perhap fund fees in the longer run.  Savings appear to come – logically enough – from the data vendors and aggregators (see ‘Swinging the axe at data management costs’ article).

But more participation is needed for Turn to evolve into a utility rather than remain an intriguing project. Right now, just over a dozen firms are involved. But at least some of these asset managers have enjoyed many thousands of pounds in cost savings.

Nick Fitzpatrick, Group Editor, Funds Europe

© 2021 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST