The solution is intended to provide data managers with a more transparent view of their global fund distribution, supporting them in meeting regulatory obligations under the likes of the Markets in Financial Instruments Directive (MiFID) II.
Under MiFID II, the responsibility for providing transparent information on fund distribution will shift from fund distributors and platform providers to fund managers.
Those fund managers will have to provide full transparency as to where their funds are being sold—something they have not historically had the ability, or the need, to do.
Data Services collates transaction data across the global distribution chain, creating a detailed and accurate view of the market for individual firms, and improving understanding of the full range of distribution.
Rob Swan, managing director of Data Services, said: “Many fund management firms are not prepared for the scope and volume of work required to simply achieve look-through of their product distribution, a task that involves the consolidation of data across thousands of administrators, distributors and advisors.”
“We anticipate that aspects of the upcoming MiFID II regulation will require fund managers to add a market overlay to monitor the full distribution chain effectively. The scale of this task should not be underestimated. The recent one-year delay of the regulation must not be seen as an opportunity to defer the project, but rather as time to ensure compliance with their regulatory obligations.”
Jon Willis, chief commercial officer of Calastone, said: “Calastone’s heritage has been founded in supporting the funds industry by driving greater efficiency through automation. As with all our developments and initiatives, we work closely with the industry to identify ways to help them address their challenges and have been delighted with the early interest in our Data Services solution.”