TISA, the investments and savings membership alliance, is celebrating a major milestone as its project to deliver a MiFID II solution achieves ISO accreditation for the open standards underpinning the downstream and upstream reporting of Costs & Charges and Target Market Data.

In developing the downstream (manufacturer to distributor) standards the Project has liaised with the European Working Group (EWG) to review and enhance the European MiFID Feedback Template (EFT) so that it incorporates country specific differences and requirements, standardises interpretation and meets any broader industry requirements.

The upstream standard provides a template to enable distributors to report, and product manufacturers to receive, information on target market sales in a standardised format. This enables firms to avoid having to develop their own bespoke systems for reporting and for receiving reports.

The upstream standard is now being taken forward by the EWG as the basis of a European Feedback Template (EFT). The EWG has previously developed the EPT (template for PRIIPs) and EMT (template for MiFID II Target Market and Costs & Charges). TISA are members of the EWG.

A standard for reporting is a huge benefit for distributors and manufacturers, as well as enabling information suppliers to develop standardised tools to serve the market. This will deliver significant efficiencies in building and reporting for firms, helping them drive down the costs of implementing MiFID II.

TISA’s MiFID II Project is being overseen by a Governance Committee representing a cross-section of European asset managers, distributors and information providers. Work has now commenced on the second phase of the Project to establish whether a technology-based solution will make implementation of the reporting standards easier and more efficient for firms. The project will be carrying out a Proof of Concept test to examine the feasibility of an industry service built around a Blockchain model.

To date the Project has delivered:

• Development of downstream open standards – including making them ISO accredited

• Development of upstream open standards

• Working with the EWG to secure agreement on the EFT

• Development of future governance for the standards

David Dalton-Brown, TISA Director General said:

“I am delighted to report that we have achieved the three overriding aims we set for this project, firstly to enable the industry to deliver a better service to their clients through the consistency of information being presented in key documents, secondly to drive down the MiFID II implementation costs and operational risks for TISA members and the broader industry and thirdly, to ensure that our solution addresses the needs of firms across Europe.

“We are now further enhancing this work in the second phase of the Project by looking at how best to harness digital technology to provide industry solutions that benefit the consumer. We are keen to involve additional companies in the project and urge those interested to contact us.”

TISA also offers MiFID II training courses, seminars and provides a range of good and best practice guides including:

• Product Governance: Approach to implementation for Distributor Reporting

• Good practice guide for product distributors and manufacturers – Product Governance

• Approach to implementation for MiFID II Costs & Charges Disclosures

• Appropriateness – approach to implementation.

Note for editors:

TISA commenced its MiFID II Governance project in November 2017 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 II3. 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

TISA is a unique, rapidly growing, 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; the proposals provide practical solutions to major consumer issues.

TISA’s increasing membership comprises over 200 firms involved in the supply and distribution of savings and investment products and associated services. These members represent all sectors of the financial services industry, including the UK’s major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, FinTech businesses, financial consultants, financial advisers, software providers and stockbrokers.

TISA’s current strategic policy and industry solution developments include financial guidance; digitalisation including the development of a Digital ID, developing open standards that support the growth of FinTech and increase consumer access to financial services, while lowering costs for providers; financial education for children; retirement savings; consumer engagement; the TISA and KPMG Savings Index.

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. This work currently includes: MiFID II, CASS, the UK Fund Trading and Settlements initiative and Payments Strategy Forum. TISA Exchange (TeX) is providing a model for transfers and re‑registrations.