Asset managers may miss the deadlines of their insurance and wealth management partners for MiFID II and PRIIPs data delivery as they’re too focused on the end of year regulatory starting point and ignoring full preparation time, according to panellists and contributors at Silverfinch’s recent conference.
The majority of asset managers are collating their data to be delivered to distributors for the January introduction of MiFID II and PRIIPs next year, leaving no time for distributors to road-test and finesse their own data processes. Industry experts recommend that insurers and wealth managers need the relevant information at least two months ahead of the regulatory deadline in order to prepare their own internal operations.
Fund managers may also struggle in amassing the correct data as it often comes from a multitude of external and internal sources. A failure to present distributors with data before the end of October could hamper the sales process and expose distributors to both regulatory and legal challenges if it means that end investors are left without adequate information when the new rules come in. As a result, this could lead distributors to having to remove certain products from their sales offering.
“You cannot reasonably expect people to get data at the end of December and then be ready to give that data out to clients the next day,” said John Dowdall, Silverfinch managing director. “These distributors are potentially dealing with hundreds of manufacturers so the key to success will be standardising the data exchange, and getting that done with a couple of month’s leeway.”
A survey at the conference revealed that most asset managers are committed to providing data within the industry standard EMT and EPT format and have commenced their projects to organise the distribution of key information along their distributions channels. However, panellists warned that using this standard may come to nothing if the data cannot be shared with the rest of the industry to make the deadline.