Subscribe to our newsletter

Stay up to date with acarda RegTech News

  • *Please complete all fields marked with an asterisk.

arep Demo

acarda arep platform

See the arep platform in action

We can demonstrate what the arep platform can do using real-life scenarios in your company. If you are interested in this, let us know using this email form:

  • *Please complete all fields marked with an asterisk.
 

Blog: Innovation for PRIIPs: SaaS improves compliance in asset management

Johannes Waldheim, Leiter IT & Solutions from acarda

It is as yet unclear whether the European Market Supervisory Authority (ESMA) will realize its intended adjustments to the financial market directive MiFid II/MiFIR for this year despite the Corona pandemic. However, an adjustment to the PRIIPs regulation for packaged retail and insurance-based investment products seems certain. In the long term, no slowdown in regulatory dynamics for asset managers is to be expected.

In the era of Covid-19, Those who have fulfilled their reporting and information obligations until now with an in-house solution based on MS Excel, for example, are usually unable to guarantee secure remote access to a central regulatory database. This makes working from home, which is currently strongly recommended in order to protect against infection, almost impossible.

Flexibility – even beyond the crisis

The situation looks quite different when all regulatory applications for reporting are obtained from the cloud as a web-based Software as a Service (SaaS). Here, location-independent access via encrypted channels is part of the basic concept. The resulting flexibility in work organisation pays off both in times of crisis and beyond. In addition, a consolidated database means that different reporting tools for different regulatory requirements can be combined in the cloud. The expense of double and multiple entries, which almost inevitably go hand in hand with distributed data storage, is eliminated; this leads to higher data quality. Last but not least, the central cloud model relieves the burden of constantly adapting reporting software to changing compliance requirements, as this task is done externally in the background in the SaaS model. The heterogeneous methodology used to calculate costs illustrates how large the expenditure saved can be. To calculate transaction costs, for example, detailed cost data for MiFid II and PRIIPs must be made available.

Although standardised templates like EMT and EPT are available as exchange formats for both MiFid and PRIIPs, large differences in the configuration and calculation of these templates can be observed across Europe. Currently, a range of regulations according to UCITS, PRIIPS or MiFid II are still applicable which can lead to both favourable and unfavourable results with regard to costs. So, for example, implicit transaction costs could either be determined using the new PRIIPs basis point estimation method or using the arrival price/full PRIIPs method. No less complex are the calculation methods in the context of the Cost Transparency Initiative (CTI) and the DC Workplace Pension Templates (DCPT).

In general, such subtleties in regulatory reporting require specific know-how that is always kept up to date; something which probably only very few asset managers possess — especially since, depending on fund composition, in addition to PRIIPs and MiFid II/MiFIR they may also have to meet the no-less-demanding Solvency II or CRR requirements.

In this context, the cloud model not only saves the expense of software adaptation and know-how acquisition, but its standardisation also improves the internal workflow for the collection and aggregation of all reportable information.

However, be aware: even an external cloud can only reduce complexity if regulatory services can be differentiated granularly and different reports can be put together flexibly. This requires a smart combination of microservice and data lake approaches that enable a fast response across multiple data sources; for example, an additional Solvency II module is required when insurance companies themselves also invest in funds. Flexible service selection provides access not only to a mechanism for calculating transaction costs, but also to an SCR calculation module based on the same data stock, i.e. without any increase in complexity. A centrally unified database of reusable regulatory information can be accessed at any time via the cloud, making the “data graves” of distributed in-house systems a thing of the past. The SaaS model strengthens compliance capability in asset management not only in times of crisis, therefore, but in every season.

More news…

Real estate fund reporting: acarda launches regulatory reporting solution based on gif_IDA standard

Regulatory real estate fund reporting is associated with certain challenges. Until now there has been no complete binding data model able to be used as a basis for automating reporting processes.

More

acarda & LPA support CyberMentor – Germany’s largest online STEM platform for girls.

Together with LPA, acarda has made a donation to CyberMentor, an online mentoring platform specifically for girls interested in STEM subjects. The leading providers of innovative SaaS solutions and financial consultancy services are now official sponsors of the online mentoring program that aims to inspire girls to study science, technology, engineering or mathematics.

More

CRR II: acarda ensures full compliance for users of the arep platform by April 2021.

By the end of June 2021, the updated Credit Risk Regulation (CRR II) will come into force. The goal of the EU regulation is to introduce a more risk-sensitive framework for management credit risks. One of the key outcomes of CRR II will be a stricter client reporting and disclosure regime.

More

Real estate fund reporting: acarda launches regulatory reporting solution based on gif_IDA standard

Regulatory real estate fund reporting is associated with certain challenges. Until now there has been no complete binding data model able to be used as a basis for automating reporting processes.

More

acarda & LPA support CyberMentor – Germany’s largest online STEM platform for girls.

Together with LPA, acarda has made a donation to CyberMentor, an online mentoring platform specifically for girls interested in STEM subjects. The leading providers of innovative SaaS solutions and financial consultancy services are now official sponsors of the online mentoring program that aims to inspire girls to study science, technology, engineering or mathematics.

More

CRR II: acarda ensures full compliance for users of the arep platform by April 2021.

By the end of June 2021, the updated Credit Risk Regulation (CRR II) will come into force. The goal of the EU regulation is to introduce a more risk-sensitive framework for management credit risks. One of the key outcomes of CRR II will be a stricter client reporting and disclosure regime.

More

EMT – from version 1.0 to 3.0. Get ready with us!

As per the latest MIFiD II guidelines, the European MIFiD Template (EMT) version 3.0 was launched to be produced by manufacturers from December 10, 2019. FinDatEx has provided a period of one year for asset managers to transition from the old EMT to the new version. This means that, by 10th December 2020, we should be able to produce EMT version 3.0.

More

Amended PRIIPs RTS draft: What’s next?

On 21 July, 2020, the European Supervisory Authorities (ESAs) informed the European Commission of the outcome of their review on the Key Information Document (KID) for packaged retail and insurance-based investment products (PRIIPs). The review of the PRIIPs Delegated Regulation pointed out the main issues that had been identified following the October 2019 Consultation Paper, in particular regarding information on risk and performance measures and transaction costs.

More

acarda GmbH

Eschersheimer Landstr. 14
60322 Frankfurt am Main
Germany

acarda Luxembourg

56 Route de Trèves
2633 Senningerberg
Luxembourg

acarda London

c/o LPA
7 Westferry Circus
Canary Wharf
London E14 4HD
United Kingdom

© 2021 acarda GmbH | Alle Rechte vorbehalten | All rights reserved
text