Advent and Investit deliver MiFID compliance guide
Advent Software (NASDAQ:ADVS), the leading provider of software and solutions for the global investment management industry, and Investit, a leading investment management consultancy, have teamed up to produce MiFID: A Practical Guide to MiFID Compliance; How Advent can help investment management firms, which outlines the buy-side impacts of Markets in Financial Instruments (MiFID), and explains how software vendors can help implement MiFID requirements.
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The guide highlights four main areas where Advent can help fund managers, including compliance, client management, dealing and safeguarding of client assets. The two Advent products which can be used to help these firms meet MiFID requirements are Advent Portfolio Exchange (APX), its portfolio and client relationship management system, and Moxy, its trade order management system.
"With many of our clients still working through complex MiFID projects and the November 1st deadline quickly approaching, it was important for us to team up with Investit to help our clients understand the impact that MiFID will have on their businesses," said Hakan Valberg, General Manager, Advent Software EMEA. "Our relationship with Investit enabled us to say with confidence that Moxy and APX can both provide the required functionality to automate MiFID compliance in the areas in which our clients use them."
"In working with over 20 fund management firms on MiFID projects, we discovered that MiFID project managers were unclear on how software vendors could help them achieve MiFID compliance," said Clare Vincent-Silk, MiFID consultant at Investit. "While many vendors brand their systems as 'MiFID compliant', they do not clarify how their systems can help with the different areas of MiFID regulations, causing confusion among MiFID project managers at fund management firms."
Added Vincent-Silk, "Software is a great enabler and it was very productive to work with Advent to identify those system functions that can assist investment management firms in achieving MiFID compliance."
Top Ten Ways Advent Can Help with MiFID Compliance:
- Record Keeping - Audit trail capability: record orders and executions of equities, fixed income, OTC, exchange traded derivatives and treasury function
- Suitability Test - Pre-trade compliance checking capability; help the firm follow the client's investment
- PA Dealing - Ability to impose and lift restrictions on staff dealing when appropriate
- Client Order Handling - Automated order allocations allowing for manually adjusted allocation overrides
- Best Execution - Connectivity - FIX connectivity to brokers and embedded broker algorithmic and direct market access applications
- Best Execution - Client Instructions - Ability to store client specific instructions against an order
- Information to Clients - Commission management enquiry and reporting capability
- Client Reporting - Client reporting, including transaction details, both ad-hoc and at regular intervals
- Safeguarding of Client Assets - Electronic interfaces to reconcile trade information with brokerage firms and custodians. Shadow accounting and collateral management capability
- Client Classification - The ability to store client information and record client classifications defined by the fund manager