Michael Aldridge, IHS Markit
London - IHS Markit, the provider of critical information, analytics and solutions, has announced the launch of RPA Manager, a service helping asset managers acquire investment research in compliance with MiFID II.
To reduce the potential for conflicts of interest, MiFID II requires asset managers to separate payments for research from trading commissions due to brokers that provide research. If an asset manager intends to use its clients' assets to fund research payments, the manager must disclose research fees, allocate those fairly among client accounts, and receive client approval for research expenses. Payments must be made from segregated research payment accounts (RPAs) created by the asset manager.
The new RPA Manager solution provides an online toolset to assist firms in adhering to MiFID II requirements, including research budget calculation, tracking and allocation, managing funding of the RPA through direct debit or commission sharing agreements, reconciliation, reporting and document management. The solution will also soon integrate with the SWIFT network and help firms manage payments through a single interface for sending payment instructions to and receiving activity notices from the bank of their choice.
"Unlike other major regulations in capital markets, which have largely impacted sellside institutions, MiFID II imposes significant burdens on asset managers," said Michael Aldridge, managing director at IHS Markit. "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."