The adoption and implementation of UCITS IV, the proposed adoption of the AIFM Directive and the likelihood of further regulations being introduced in response to the financial crisis will undoubtedly put pressure on the fund industry. Alignment of UCITS with the MiFID directive is seen as essential by the European Commission, bringing with it rules on conflicts of interest, conduct and client protection.
The goal of harmonisation across the EU includes standardization and simplification of pre-contract documentation for investors, measures to ensure effective risk identification, measurement and management, and the provision of efficient, secure electronic communication. As a result, fund managers will need, more than ever, flexible technology in order to ensure compliance.
The use of electronic messaging through SWIFT, EMX and Calastone is an increasing requirement, along with automation of inefficient or manual processes and improved market communication between clients and fund issuers.
Vermeg's Omega solution is a single investment accounting platform that supports institutional funds (insurance and pensions), mutual funds (UCITS) and private banking funds. It aids regulatory compliance, optimises efficiency and reduces manual processing, which helps reduce costs and operational risk, supports growth and improves client services.