New blockchain utility claims to cut asset management data and analytics costs by up to 90%

The Investing and Saving Alliance’s (TISA) new digital utility business for the asset management industry, the TISA Universal Reporting Network (TURN), will cut data and analytics costs by between 80-90% per annum from year one, according to a press release

The participating firms have revealed that to date their data management costs average £200,000 per year. „TURN will immediately reduce these costs to less than £30,000 per year (fee depending on size of firm and whether or not they are a TISA Member), with a one off £15,000 joining fee (£18,750 for non-members),” TISA said.

TURN can also announce that the utility will already be accessible to 60% of the market once it launches later this year. That is because Allfunds, Calastone, Deutsche Bank, Fidelity International, Link Group, MFex, and Transact are some of the notable firms to have already signed up to help with the advisory and testing phases of the new industry-wide platform.

„Atos, a global leader in digital transformation, will operate the bespoke and highly innovative utility which will provide a revolutionary and secure data exchange solution for the asset management industry,” the company said.

Gary Bond, CEO of TURN, said: “TURN is an extremely exciting initiative which will not only provide a solution for the collection and dissemination of EMT regulatory data, but it will also save participating firms notable sums of money which could then passed on to the customer. It’s fantastic that such industry leaders are joining the network to help build TURN before the testing phase has even begun, which will be later this month. This is an industry-led and run, not-for-profit initiative that will ultimately ensure that consumers are offered the best and most suitable products while lowering costs and time spent on admin for asset managers.”

The industry utility is on course to deliver a demonstration to the industry later this month, with the official launch highly anticipated in early Q4 2020. Its ambition is to ease regulatory reporting requirements of MiFID II and will be available across Europe based on blockchain technology.

All relevant parties will have access to the EMTs (European MiFID II Template) on a real time basis and this will be of a high and consistent quality. Currently, this exchange of information is inconsistent and sometimes firms struggle to obtain all the data they need from other firms to enable disclosure of all costs.

TURN will ensure better transparency of funds so that they can be more easily and accurately profiled. This will allow for better comparison between funds on both the genetic make up of the fund and its costs. The availability of more transparent profiling is in response to demands by retail investors and will also be of particular use when ESG reporting obligations become a requirement next year.

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TURN (TISA Universal Reporting Network) is an Industry blockchain solution for the collection & dissemination of EMT regulatory data. The overall aim of this solution is to increase market compliance, reduce regulatory costs and provide a better service to investors. TURN is the result of TISA’s MIFID II Project under the oversight of a Governance Steering Committee. www.tisa.uk.com/turn/

The Investing and Saving Alliance (TISA) is a unique and rapidly growing membership organisation. TISA membership is representative of all sectors of the financial services industry: We have over 200- member firms involved in the supply and distribution of savings, investment products and associated services, including the UK’s major investment managers, retail banks, insurance companies, pension providers, online platforms, distributors, building societies, wealth managers, third party administrators, Fintech businesses, financial consultants, financial advisers, industry infrastructure providers and stockbrokers.