How a leading Asset Management firm chose to address the issue of MiFID II reporting with UnaVista
Since its inception, the firm has grown steadily through organic growth and acquisitions – with key acquisitions around the globe including APAC, Europe and North America. It is now one of Europe’s largest asset management firms, managing assets exceeding £250 billion. In 2016 they started to look at how they can comply with the transaction reporting element of MiFID II and realised there were a number of challenges they would face.
MiFID II Transaction Reporting Challenges for the Asset Management industry
The majority of the asset management sector will likely be fulfilling their transaction reporting requirement to an NCA (National Competent Authority) for the first time. As such, this asset management firm was required to take some challenges into consideration.
The exemptions under MiFID I which relieved asset managers of the obligation to report, so long as they had an EU firm reporting on their behalf, are no longer available under MiFID II. The regulation broadens the information that must be detailed in a transaction report; the scope of financial instruments that need to be reported, and the events that trigger the requirement to report.
For this asset manager, due to size and global footprint of the firm, it was essential that they engage an ARM (Approved Reporting Mechanism) that could collate their transaction reporting data from multiple sources, and in multiple formats, and route it to the appropriate NCA (National Competent Authority).
Regulatory fines for reporting firms who fail to comply have been shown to result in severe losses to shareholders and considerable reputational damage to clients, so they were keen to select a vendor with the experience and reputation they could trust.
Why was UnaVista the right solution?
UnaVista’s MiFID II transaction reporting solution was selected for being the most robust in the marketplace and for its ancillary capabilities that were not offered by competitors. The firm needed a platform that could report across the full spectrum of asset classes and geographic markets, including equities, fixed income, property and alternative assets. UnaVista’s Rules Engine was able to manage the firm’s global footprint, multiple systems and range of industry formats, as well as the connections to all relevant NCAs within the EEA.
On top of the standard reporting, the asset management firm was able to take advantage of a number of ancillary services designed to help companies improve their reporting.
What’s next for the asset manager?
With more regulations on the horizon, the asset management firm chose UnaVista in order to build a strategic relationship that would extend beyond the implementation of MiFID II. New regulations, such as SFTR (Securities Financing Transaction Reporting), CAT (Consolidated Audit Trail) and new G20 reporting jurisdictions, will also be covered via UnaVista. Asset management firms, and indeed other market participants with regulatory reporting obligations, often opt for a partner with a robust solution that can see them through changes to existing regulations and the introduction of new ones.
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