Digital utility shown to dramatically lower MiFID data costs

A digital utility has managed to lower data management costs related to MiFID II by over £100,000 (€110,000) for firms involved in the project.

The firms – which include the fund platform Allfunds and asset manager Fidelity International – belong to the Tisa Universal Reporting Network (Turn), which has officially launched.

Described as an industry-run utility, Turn’s aim is to ease regulatory reporting requirements of MiFID II and is now available across Europe based on blockchain technology. 

The participating firms – which also include transaction network Calastone and Deutsche Bank – have disclosed that their data management costs averaged £200,000 per year until adopting Turn, after which the costs fell to less than £30,000 per year.

The exact cost for the firms depends on the size of the firm and whether they are a member of Tisa – The Investing and Saving Alliance. 

Link Group, MFEX, KNEIP, Transact Deutsche Wealth Services, FNZ and Fund Connect are also users of the facility.

Before the building of Turn, the exchange of information was inconsistent, and firms struggled to obtain all the data they required from other firms to enable disclosure of investment-related costs, Turn said. This led to a lack of transparency and inappropriate products being marketed to retail investors. 

But with Turn, the firms have access to the European MiFID II Template (EMT) on a real-time basis and of a higher quality, Turn said.

Additional functionality beyond MiFID II is planned, including ESG data and a tool to manage the Packaged Retail and Insurance-based Investment Products – or “Priips” – rules. Geographical expansion is also planned.

Gary Bond, CEO of Turn, said: “The impact Turn will have for asset managers, distributors, IT firms and other platforms across Europe is huge.”

Matt Newnham, managing director at MFEX, said: “We are already seeing the benefits of building a fully transparent, immutable and efficient exchange of regulatory and fund data, through a data utility for the asset management and fund distribution industry.”

As part of its development, Turn has also set up a governance board.

© 2020 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
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

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST