Red Deer has deployed its research management solution to Engadine Partners to support its MiFID II compliance processes.
Engadine will utilise the Red Deer solution to manage inducement risk, track research consumption across channels, assess value, and manage budgets in compliance with MiFID II regulations. Consequently, the company will be able to conduct broker votes based on these consumption and valuation metrics.
The research management solution captures and attributes research consumption in all channels, including email, chat, and voice, providing buy-side firms with accurate views of their research value. This method also helps prevent inducement across the firm.
Its Outlook plugin and mobile application empowers firms to be MiFID II compliant with minimal disruption to investment processes. Advance budget management lets firms better allocate budgets at the fund, strategy or individual level and track contributions from hard and soft budgets.
Engadine COO Chude Chidi-Ofong said, “We chose Red Deer as we are looking to automate and evolve our broker vote under MiFID II, combining ‘top down’ qualitative measures with a broader ‘bottom up’ evaluation methodology, based on an understanding of research costs and accurate in-house consumption metrics.
“With Red Deer, we can avoid complex and time-consuming reconciliation issues, whilst also gaining a clearer picture on which broker resources are being consumed and adding value.”
Last year, Close Brothers Asset Management selected Red Deer’s Research Management solution to improve its own MiFID II processes. The company said the RegTech solution will optimise the management of its research budgets and enforce stricter controls around inducement across its investment business.
Red Deer CEO Henry Price said, “Red Deer is delighted to welcome Engadine to our growing client community and we are pleased that we can add value to their investment process.
“Adding a bottom up evaluation to the research review is essential and we are seeing hedge fund managers switch to such an approach once they realise its benefits and ease of adoption. In addition, we are still seeing the requirements for board and investor research reporting evolve, as clients start to see the meaningful data accrued from a year’s consumption.”
Copyright © 2019 FinTech Global
Copyright © 2018 RegTech Analyst
