In our first post on the impact of fund data, the argument was put forward that clean data not only improves sales efficiency but by reducing the amount of noise which arises when having to fix inaccurate data points, it can also lead to greater cost efficiency, leading to lower fund TERs.
But that’s only half the story.
Distributed ledger technology—and more notably Blockchain—has stirred debate on many levels. Asset servicers have yet to tire about explaining the benefits and cost savings it could bring to their industry, while employees at central counterparty clearing houses and central securities depositories question whether their jobs are secure in this new environment.
The theory behind Moore’s Law is that computer processing power doubles every two years. And whilst technology advancements are benefiting global industry at large, within asset management it is beginning to blur the lines with respect to data and the myriad reports that regulators have required within recent years.
On April 6th after the second round of votes by the authorities of the European Union, ESAs obtained the approval to issue the final draft version of the Final Draft Regulatory Technical Standards (RTS) on the PRIIPs KID. The expectations of the market were huge, hoping that this document would bring clarity and relief on the various challenges that the PRIIPs KID/data production and dissemination entails.