Source: TISA Universal Reporting Network
TISA Universal Reporting Network (TURN), a blockchain solution for the collection and dissemination of fund related data, is today announcing that it has created and submitted a static fund data template to FinDatEx.
FinDatEx is a joint structure established by representatives of the European financial services sector to standardise the exchange of data between stakeholders in applications of MiFID II, PRIIPS and Solvency 2.
The current demand derived from proprietary standards means that asset managers, distribution businesses and data vendors and aggregators, must submit between 700-1,500 data points per sale. A standardised template will reduce this to between just 50 and 80 data points.
The volume and complexity of data and the speed that information needs to be transferred between stakeholders in the fund industry has increased exponentially. The absence of an international, standardised protocol until now has meant that the financial services sector lags behind other, more technologically advanced industries.
Static fund data, which is used to characterise investment funds, can be lengthy and is often specific to each distribution partner. The data is still input manually which can lead to human error, such as duplications and incorrect information. This new standardised template ensures there is a common set of descriptors, which guarantees consistent reporting, that is clear and universally understood. A standard template will significantly increase efficiencies across the industry and the certainty of fund data.
Retail investors will benefit from this increased transparency, reliability and improved ability to discern and compare investment funds.
Deutsche Wealth Services, MFEX, Calastone, Transact, Deutsche Bank, Allfunds, Link Group, and Fidelity are some of the notable firms using the platform.
Gary Bond, CEO, TURN, said: “For too long the fund industry has faced hurdles that create inconsistencies, errors and friction for all stakeholders. Until now, distributors have used their own, manual services to collate and share data, which can lead to errors, inconsistencies and can be difficult to decipher by other stakeholders. This leads to a slow service that lacks transparency.
“A standardised static fund data template reduces and simplifies the input of data making this transfer of information far more reliable, consistent and transparent. A template will cut costs and time for the industry, while ensuring clear and comparable fund data for retail investors. Finally, the financial services industry is catching up with more advanced sectors.”
Andrew Lelliott, Managing Director, Link Group, said: “Driving the simplification and consistency of fund static data across the funds eco-system will be a huge leap forward for our industry in the UK and Europe. Over many years such data requests and provision have become varied and inconsistent in terms of content, format, and delivery method. Such inconsistencies have driven cost and complexity to Fund Managers and Distributors. Our goal at TURN is to provide a solution for the whole industry by simplifying content and providing standard formatting and delivery for all participants.
“We at Link Group feel that we have an important stewardship responsibility to challenge the status quo and drive positive change through our industry forward. In doing so, we aim to reduce costs, enhance efficiency, and ultimately improve investor outcomes.”