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Defaqto offers MiFID-compliant data free to adviser firms

22 January 2018

As part of its drive to help adviser firms meet their MiFID II requirements, Defaqto is offering additional information through its financial planning software solution Engage. 

Following the introduction of MiFID II on the 3 January 2018 , Defaqto said the information would assist advisers in becoming more efficient in delivering compliant advice.

The new regulation will require advisers to disclose the costs and charges associated with an investment, and ensure that the investment is suitable for the type of investor.

All the information, supplied by Morningstar, will be available in one place via Engage and can be accessed free of charge, the firm said.

In addition to being able to view the information, firms will also be able to sort and filter on a selection of the new data to help them find the best options for their clients.

The new data is divided into four categories:

  • Target client – The target market, type of client and the level of knowledge and experience that the fund is aimed towards
  • Client objectives – The types of client return profile, loss capacity and time horizons that the fund is suitable for
  • Appropriateness – Information on the distribution method, structure and other relevant risks
  • Costs and charges – Data on one off charges, transaction fees, performance fees (both estimate and actual) and the performance fee terms.

Pan Andreas, head of Insight and Consulting (Funds and DFM) at Defaqto, said: “MiFID II has added another layer of administration onto already busy financial adviser firms. Having all of the information on costs and charges as well as suitability all in one place via Engage should help advisers to remain compliant without placing too much extra demand on time and without adding any extra costs.

“This latest offering is part of Defaqto’s broader goal to continue to “innovate and advance financial advice technology and financial planning software.”

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