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TISA’s MiFID II project defines data standards

July 9, 2018

TISA, the investments and savings membership organisation, has completed the first phase of its MiFID II Governance Project to identify and develop data standards for the collection and distribution of Costs & Charges and Target Market Data.
Under the auspices of a Governance Committee representing a cross-section of European asset managers, distributors and information providers a working group has developed a single universal set of reporting standards covering downstream (manufacturer to distributor) and upstream (distributor to manufacturer) processes.
The development of the downstream standards has included liaison with the European Working Group and a review of the European MiFID Template (EMT) to identify country specific differences or requirements, standardise interpretation and where necessary to enhance standards to meet broader industry requirements.
Industry views on how to report relevant MiFID II data upstream vary widely in terms of content, granularity and frequency. The standards have also had to take into account that the UK’s distribution landscape differs considerably to much of the rest of Europe.
The project is now moving into phase 2 to allow further industry consultation on the business rules that could form the basis of the development of a set of ISO standards. Market analysis is also being conducted to assess the impact of the MiFID II reporting requirements and depending on the findings, the project will consider solutions to make the implementation easier.
David Dalton-Brown, TISA Director General said:
“The overarching aim of this project is to meet the implementation requirements of MiFID II, deliver better outcomes for the consumer and cost savings to the industry. Without an industry led approach, firms and their customers will be exposed to increased and steadily rising costs, delivery risks and data duplication resulting from the implementation of MiFID II.
“We are already seeing many of these issues being reported. In particular, the flow of data on costs and charges from manufacturers and on target market back from distributors is proving to be demanding, complex and un-wieldy. However, we are optimistic that an industry led solution can resolve this and deliver significant benefits to firms and consumers. We are therefore seeking to work with the other industry bodies and working groups to develop a collaborative solution.”
Governance Committee member Marta Oñoro, Global Head of Legal at Allfunds, said:
“This is a very important initiative for the industry as we look to ensure both clients and manufacturers in Europe are getting the best possible outcome from the MiFID II regulation in a consistent and coordinated manner having common templates. Such templates need to work for every player in the chain not only from a data content point of view but also from a technical perspective in the way the information is communicated. The same goes across jurisdictions and this is why a Pan-European view is being taken into account. Consistent templates are a key concern of the working group and something this project will help to provide.”
TISA commenced its MiFID II Governance project last November in response to requests from members to consider whether it would be possible to develop an optimal solution and/or open, interoperable, ISO based data standards. The project identified 7 initial key benefits:
1. Significantly reduce industry’s operational and technology costs in the implementation of MiFID II
2. Significantly reduce consultancy and legal fees being incurred in the implementation of MiFID II
3. Ensure the accurate and consistent presentation of costs & charges in all transaction, adviser and client reports
4. Reduce regulatory risk for all participants in the investment value chain
5. Ensure future regulatory changes can be implemented once and consistently for the industry
6. Secure better outcomes for consumers
7. Create the opportunity to assess the desirability of an industry solution.
Issued on behalf of TISA by Atlas Partners, for further information please contact:Sarah Evans, telephone: 020 7183 7154 or 07523 609413, email sarah.evans@atlas-partners.co.uk Email: tisa@atlas-partners.co.uk
Notes for Editors
TISA is a unique, consumer focused membership organisation. Our aim is to improve the financial wellbeing of UK consumers by aligning the interests of people, the financial services industry and the UK economy. We achieve this by delivering innovative, evidence based proposals to government, policy makers and regulators.
TISA’s growing membership comprises more than 190 firms involved in the supply and distribution of savings and investment products and services. These members represent all sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, FinTech, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.
Current themes of TISA policy work include:
• Brexit: developing proposals for government that will enable the savings and investments sector to prosper on a global scale
• Digitalisation: a digital identity for consumers of financial services, innovation, standards and data responsibilities
• ISA’s: LISA, simplification of the regime• Retirement saving: the Auto Enrolment review, self-employed and pension tax relief
• Housing: the use of property to supplement retirement income
• Guidance: developing a framework and services to make guidance more widely available
• Education: supporting the education of young people to make them aware of the impact of finance on their life.
TISA also provides support on a range of operational and technical issues targeted at improving infrastructure and processes, standards of good practice and the interpretation and implementation of new rules and regulations. TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve industry effectiveness by reducing cost and risk and to enhance customer outcomes. This work currently includes: MiFID II, CASS, the UK Fund Trading & Settlement initiative and Payments Strategy Forum. TISA Exchange (TeX) is providing a model for transfers and re-registrations.
Website: www.tisa.uk.com