IHS Markit (Nasdaq: INFO) has rolled out a new asset managing service ahead of MiFID II’s implementation this January. RPA Manager represents the latest addition to the group’s product suite, aimed at helping asset managers administer newly regulated activity, such as managing commissions and tracking and evaluating research.
The launch of RPA Manager comes at a key time for asset managers, many of which are eyeing the January 3, 2018 deadline for MiFID II. The impending regulatory changes will dramatically reshape the financial services industry, including the research sector. New mandates will require banks and asset managers to publicly disclose their research spending, most of which was previously private or disclosed with other trading activities – recent estimates have portended an industry consolidation with massive cuts in this space.
In light of this potential shift, IHS Markit has introduced RPA Manager to help eliminate and reduce any conflict of interest that will obligate the separation of payments for research from trading commissions. Under MiFID II, payments must be made from segregated research payment accounts (RPAs) created by the asset manager.
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Regulations focusing on research sector
Consequently, it is amidst these new regulations that the RPA Manager solution will help firms best adhere to new compliance requirements and research budget calculation. The management of funding of the RPA will also be instrumental for groups, many of which are struggling to simply meet MiFID II deadlines, let alone grapple with the passage of the newly imposed regulations.
IHS Markit’s new solution will also be able to integrate with the SWIFT network, which will help firms manage payments through a singular interface. RPA Manager is fully functional with other elements of IHS Markit’s research management services suite, including Broker Vote and Commission Manager.
Michael Aldridge, Managing Director at IHS Markit, commented: “Unlike other major regulations in capital markets, which have largely impacted sellside institutions, MiFID II imposes significant burdens on asset managers. With RPA Manager and integrations to our other Brokerage and Research Services tools, we can offer firms an easy to deploy, scalable solution for administering research payments, tracking the quality of research, accounting for commissions and more.”
“Asset managers are bracing for an increase in operational intensity driven primarily by the looming MiFID II deadline. We are actively collaborating with customers on the design and implementation of a holistic workflow solution that will bridge our multiple services to help fund managers administer newly regulated activity, such as managing commissions and tracking and evaluating research,” explained Tom Conigliaro, Managing Director at IHS Markit.
The latest product rollout also follows on the heels of another development at IHS Markit, which recently saw a partnership with Deloitte. The accord will leverage IHS Markit’s Outreach360 solution and Deloitte’s regulatory business advisory expertise via a managed service.