How Kneip’s Data Collection Service Can Help You Comply with MiFID II and SFDR Regulations

If you are a fund distributor or a bank that offers investment products and services to your clients, you know how important it is to comply with the latest regulatory requirements, such as the Markets in Financial Instruments Directive II (MiFID II) and the Sustainable Finance Disclosure Regulation (SFDR). These regulations aim to promote transparency, sustainability and investor protection in the financial markets, but they also impose new challenges and costs in terms of data provision.

You need to collect, verify and disseminate accurate and consistent data and documents from various sources, such as asset managers, fund administrators and regulators, for every fund and financial instrument that you make available to your clients. You also need to take into account your clients’ sustainability preferences and risks when conducting suitability assessments and recommending products. This can be a daunting and time-consuming task, especially if you have to deal with multiple data vendors, formats and transmission methods.

The Risks of Non-Compliance

Non-compliance with regulatory standards can lead to severe consequences, including hefty fines, reputational damage, and loss of investor trust. Poor quality data exacerbates these risks, leading to inaccurate reporting and potential legal repercussions. In an environment where precision is non-negotiable, relying on subpar data collection methods is a gamble no financial institution can afford to take.

Importance for In-House Operations

High-quality data is not only crucial for regulatory compliance but also for the smooth functioning of in-house operations. From front-office trading to back-office settlements, every department relies on accurate data to perform efficiently. Poor data quality can lead to operational bottlenecks, increased costs, and reduced productivity. Ensuring data integrity across all departments is essential for maintaining a competitive edge in the financial sector.

Limitations of Traditional Data Vendors

Traditional data vendors often struggle to provide the comprehensive and accurate data needed for regulatory compliance and operational efficiency. These limitations include:

• Data Inconsistencies: Variations in data formats and sources can lead to inconsistencies, complicating data integration and analysis.
• Delayed Updates: Slow data updates can result in outdated information, affecting compliance and decision-making.
• Limited Coverage: Some vendors may not cover all necessary data points, leaving gaps that can hinder compliance and operations.

The Kneip advantage

That’s why you need a reliable and efficient partner that can help you streamline your data collection and dissemination process, while ensuring the highest quality and compliance standards. That’s why you need Kneip.

Kneip is a leading provider of fund data management and reporting solutions for the asset management industry, with over 30 years of experience and expertise. Kneip works between asset managers and distributors to offer a single source of data and documents that you can trust.

With Kneip’s Data Collection Service, you can:

• Reduce the cost and complexity of data and document collection. Access data sources directly via Kneip’s network and reduce time to market for new funds offered.
• Ensure data accuracy and consistency. Kneip collects data and documents right from the source, without any third-party intervention, and applies rigorous quality checks and validations, based on its deep regulatory and market knowledge.
• Simplify your data integration and dissemination process. Kneip delivers data and documents in a flexible and standardized way, compatible with any format and transmission method that you prefer.
• Meet your clients’ sustainability expectations and obligations. Kneip provides you with all the relevant data and documents to comply with the SFDR and MiFID II requirements, such as the European ESG Template (EET), the European MiFID Template (EMT), the UCITS KIID, the PRIIPs KID and the SFDR disclosures.
• A comprehensive and scalable solution that covers all your data and document needs, from static and dynamic data to regulatory and marketing documents, to trading and holdings data.
• A trusted and experienced partner that has a proven track record of delivering high-quality and compliant data and documents to over 500 distributors and 420 asset managers worldwide.
• A competitive advantage that allows you to offer more value to your clients, by providing them with accurate, consistent and sustainable information across every fund and financial instrument that you distribute.

Don’t let data and document collection be a burden and a risk for your business. Let Kneip handle it for you, so you can focus on your core activities and grow your market footprint.

If you want to learn more about Kneip’s Data Collection Service and how it can help you comply with MiFID II and SFDR regulations, contact us today and request a demo. We will be happy to show you how our solution can make your life easier and your business more successful.