With the deadline for MiFID II fast-approaching, Hermes Investment Management has partnered with RegTech startup Red Deer.
The £30.1bn manager has selected Red Deer’s MiFID II research valuation management solution to manage its research inducement, consumption, valuation and budgeting requirements, in compliance with the new regulation.
Red Deer’s will mean that Hermes ‘can streamline compliance whilst maximising its investors’ value from research’ according to Eoin Murray, head of investment at Hermes.
“We selected Red Deer for its approach to meeting both our front and back office needs and MiFID II requirements”, he added.
“Red Deer reduces the risk of inducement, while also offering comprehensive research consumption and evaluation management across all asset classes in one centralised solution. This will enable us to track and understand interactions in-house, improving accuracy without additional cost or interruption to our business.”
London-based Red Deer is a financial technology company dedicated to solving the information management issues facing fund managers. It enables active investment managers to ‘intuitively explore and discover, share and collaborate and make data-driven decisions’ that drive performance, whilst seamlessly staying on the right side of regulation according to its website.
With the deadline for MiFID II only two months away, the financial services industry is turning to technology to make sure they are compliant.
Last month, GAM, an independent pure-play asset manager, selected Red Deer’s MiFID II research valuation solution. GAM said it will use the solution to consume and value research so that it can be paid for independently from trade execution, in compliance with MiFID II.
Cheyne Capital Management, a European alternative investment fund manager, also recently selected Red Deer’s MiFID II solution to manage its research consumption, valuation and inducement requirements across its investment business.
Luke Oubridge, CEO of Red Deer, added, “Our flexible, integrated and non-intrusive front-office approach to managing inducement, consumption and valuation will assist Hermes in gaining a greater understanding of the value and the cost of its research, while at the same time streamlining MiFID II research compliance across the firm.”
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