Delta Capita Launches Due Diligence Service for Structured Products

Delta Capita announced the launch of a new solution in its structured products service offering this Friday.

inSPire Due Diligence will focus on ‘know your distributer’ regulations that investment banks must adhere to.

“This is another example of inSPire bringing together the industry with an exciting new initiative for the mutual benefit of all participants,” said Delta Capita CEO Joe Channer.

“inSPire’s Due Diligence service will deliver significant efficiencies and cost reductions to the market at a time when it is most needed.”

The new solution provides users with a platform that will allow due diligence information to flow between distributors and permissioned issuers.

Along with a preset questionnaire, inSPire Due Diligence will employ a team of structured product specialists whose job is to collect, produce, and monitor the due diligence data on behalf of participating structured product issuers.

Regulatory drivers

The new service is a result of heightened regulatory scrutiny over structured products driven by the all-encompassing regulatory framework that is MiFID II MiFID II MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina Read this Term.

Regulators now expect a much higher level of due diligence and information sharing to satisfy so-called ‘know your distributor’ requirements.

Delta Capita developed its new service in conjunction with a mixture of structured products specialists and investment banks.

Based on those joint efforts, the companies were able to agree upon “a common template, process and standards” for meeting regulatory requirements.

“We are constantly looking for opportunities to drive efficiencies across the industry and there is now a genuine openness for mutual solutions to shared problems,” said inSPire managing director Mark Aldous.

“inSPire Due Diligence is delivering much needed standardisation and streamlining of processes that deliver enhanced due diligence and service levels. Issuers who use the utility receive comprehensive Due Diligence produced to a market leading standard. For Distributors it will reduce their administrative overheads when responding to multiple issuer requests for similar information throughout the year.”