TISA Associates with Atos to Build European MiFID II Blockchain Utility for Asset Management Industry
TISA, the UK’s cross-industry financial services membership body, has appointed Atos, a digital transformation firm, to develop a digital utility for the asset management industry, described the TISA Universal Reporting Network (TURN). TURN is being designed to alleviate regulatory reporting requirements for MiFID II. It will be accessible across Europe based on blockchain technology and is due to launch in the last quarter of 2020.
This new platform will enable asset managers and distributors, including financial advisers, to capture, share and transmit MiFID II data across Europe to all relevant stakeholders, by a standardized EMT (European MiFID II Template). All appropriate parties will have access to the EMTs on a real-time basis, and this will be of high and consistent quality. Recently, this exchange of data is inconsistent, and sometimes firms strive to obtain all the data they require from other firms to allow disclosure of all costs.
All stakeholders who will have access to the data can be convinced that it is the correct and standard format. It will open up investment opportunities for end-consumers. The platform should help make it more accessible for asset managers, distributors, and their consumers to assure that the products being marketed and sold to them are comparable, clear about the costs, and appropriate for the target market.
Additionally, it will provide better consistency for asset managers when Environmental, Social, and Governance (ESG) reporting obligations commence in the first half of 2021. This will also secure the end consumer is more knowledgeable about their investment options. TURN will build on the open standards (downstream, upstream, and template) generated with TISA members. It will be operated as a not-for-profit by the users for the users.
Jeffrey Mushens, Technical Policy director at TISA, said in a statement, “Atos has been appointed as the vendor to collate and share the data collected. After a competitive pitch process, it was clear that Atos had the strongest reach and technical capability, enhanced by their clear sense of enthusiasm for this game-changing project.” “The impact will be substantial, for all types of firms working in this space, including the UK, the EU, and Switzerland. The utility is a sought-after ambition. We have been working with our members, including European asset managers, distributors, platforms, and IT firms to identify and address their needs through TURN. We expect that the solution will enable the future delivery of key data for ESG, as well as for feedback and other regulatory requirements. This is an industry-led and run, a not-for-profit initiative that will ultimately ensure that consumers are offered the best and most suitable products.”
Adrian Davis, head of Markets (Global) Financial Services & Insurance Industry Consulting at Atos, said in a statement, “We are delighted to partner with TISA to develop and operate the bespoke and highly innovative MiFID II blockchain utility which will provide a revolutionary and secure data exchange solution for the asset management industry. “This partnership further increases our presence within the investment sector, building on the already strong presence of Atos within the UK financial services industry.” Atos was appointed as the preferred supplier after a competitive pitch process, which witnessed 13 firms return proposals to TISA.