Tried and tested solutions to the new MiFID II challenges

4 August 2017

Dunstan Thomas, a leading disclosure solutions provider, is today launching four new MiFID II reporting solutions designed to enable asset managers to meet new MiFID II reporting requirements which will be enforceable in less than five months’ time from 3rd January 2018.

Dunstan Thomas provides asset managers with new ‘Ex-ante’ point of sale illustrations. ‘Ex-ante’ disclosure rules demand a point of sale illustration disclosing key investment product and service costs and charges which investors can expect to incur annually. Dunstan Thomas Imago has been delivering illustrations such as these for more than 20 years.

Dunstan Thomas supports delivery of depreciation and quarterly reports. MiFID II demands that asset managers issue a report to investors if an asset provided by their firm goes down by more than 10 per cent. Performance reports will have to be issued at least quarterly rather than half-yearly. Dunstan Thomas Imago delivers these reports as a static PDF or made available online via Imago Portal.

European Securities & Market Authority guidelines, which provide some of the more detailed requirements in MiFID II, demand that firms give investors a point of sale illustration. These need to show “the cumulative effect of costs on returns which must be comprehensive of anticipated spikes or fluctuations (relating to upfront fees, exit costs etc.)”

New ‘Ex-post’ sales disclosure requirements demand an annualised breakdown of costs accumulated where asset managers have (or have had) a relationship with the client during the year. The guidance also states, that where post-sale disclosure is provided on a regular basis, it should be personalised. Many of the product and service charge costs being disclosed in these illustrations have not been disclosed to investors before and they are likely to be heavily scrutinised, so it’s important to get it right first time.

Bryan Beeston, Business Development Director at Dunstan Thomas explained:

Having unpicked MiFID II disclosure requirements, we spotted that asset managers were not focusing enough on the investor reporting and pre- and post-sale illustration requirements within MiFID II. Because we have such depth in understanding of how the data for these types of illustrations and reports can be brought together, tailored to specific audiences and then presented both online and in paper form, it made sense to offer ready solutions to meet asset managers’ needs ahead of tight MiFID II compliance deadline.

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