Hermes signs with Red Deer for post-MiFID research compliance

Source: Red Deer

Red Deer, a next-generation financial technology company dedicated to enhancing the performance of active investment managers, is pleased to announce that its MiFID II research valuation management solution has been selected by Hermes Investment Management (Hermes), the £30.1 billion manager.

Hermes will use the solution to manage its research inducement, consumption, valuation and budgeting requirements, in compliance with the new MiFID II regulations that come into effect in January 2018.

“We selected Red Deer for its approach to meeting both our front and back office needs and MiFID II requirements. Red Deer reduces the risk of inducement, while also offering comprehensive research consumption and evaluation management across all asset classes in one centralised solution. This will enable us to track and understand interactions in-house, improving accuracy without additional cost or interruption to our business,” said Eoin Murray, Head of Investment, Hermes. “Red Deer’s solutions for consumption monitoring and payments, coupled with its data insight and analytical capabilities, mean that we can streamline compliance whilst maximising our investors’ value from research.”

Red Deer’s research valuation management solution captures and attributes firm research consumption across all research channels including email, chat and voice, giving buy-side firms the most accurate view of their research value. This approach has the added advantage of preventing inducement across the firm. Red Deer’s Outlook plugin and mobile application mean that firms can be MiFID II compliant quickly, with minimal disruption to their investment process. Advanced budget management allows firms to allocate budgets at the fund, strategy or individual level and track contributions from hard and soft budgets, with alerting to ensure budgetary thresholds are maintained. Oversight reporting is exceptions-based, offering compliance teams greater transparency and operational efficiencies.

“We are delighted to welcome Hermes to our network of clients and to assist them in navigating the complexities associated with the new regime,” commented Luke Oubridge, CEO of Red Deer. “Our flexible, integrated and non-intrusive front-office approach to managing inducement, consumption and valuation will assist Hermes in gaining a greater understanding of the value and the cost of its research, while at the same time streamlining MiFID II research compliance across the firm.”

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