New Service Addresses Buyside MiFID II Challenge

July, 2017

IHS Markit has announced the launch of RPA Manager, a service helping asset managers acquire investment research in compliance with MiFID II.

To reduce the potential for conflicts of interest, MiFID II requires asset managers to separate payments for research from trading commissions due to brokers that provide research. If an asset manager intends to use its clients’ assets to fund research payments, the manager must disclose research fees, allocate those fairly among client accounts, and receive client approval for research expenses. Payments must be made from segregated research payment accounts (RPAs) created by the asset manager.

The new RPA Manager solution provides an online toolset to assist firms in adhering to MiFID II requirements, including research budget calculation, tracking and allocation, managing funding of the RPA through direct debit or commission sharing agreements, reconciliation, reporting and document management. The solution will also soon integrate with the SWIFT network and help firms manage payments through a single interface for sending payment instructions to and receiving activity notices from the bank of their choice.