Amrish Ganatra, Commcise
London and New York - Commcise, the provider of integrated commission management solutions, and Convergex's Westminster Research Associates, have announced a technology-based, end-to-end solution to help asset managers to be compliant with the upcoming MiFID II regulations relating to payment for research.
Due to come into effect on 3 January 2018, the MiFID II regulations will require investment managers to be far more rigorous in the way they manage their research spend. In just over nine months from now, asset managers in Europe must be able to demonstrate, at a minimum:
- All trade commissions are fully unbundled, such that no payments for research are being made alongside a trade (unless via a CSA arrangement);
- CSA balances are being promptly swept into one or more ring-fenced Research Payment Accounts (RPAs);
- They have a clearly defined research budget, not linked to historic trading volumes, either at desk/strategy level or by fund;
- Research funding is tracked against the research budget;
- A defensible research valuation model demonstrates that only substantive research has been paid for; and
- An end-to-end audit trail which clearly documents the entire process.
Buy-side firms are looking for a single integrated solution that can handle all key aspects of commission sharing agreements (CSA) and research payment accounts (RPA). This includes trade reconciliation, invoice management, research budgeting, research evaluation, consumption tracking, payment processing, cash management, MiFID reporting and due diligence support. The joint solution approach will allow buy-side and sell-side firms alike to benefit from a turn-key MiFID II-compliant system.
Amrish Ganatra, MD at Commcise said "We believe asset managers are looking for a single integrated solution. By integrating our technology, technical and business expertise and experience, we will be able to offer clients a wider range of options."