Posted by Stephan Mayer on 23 September 2020
Creating an unique entry point for cross-border fund distribution services
Fund distribution platforms act as intermediaries between distributors and asset managers; typically performing administrative functions such as distribution agreements, order routing and rebate calculations. Stephan Mayer, Marketing & Communications Manager, ACOLIN, discusses this in more detail.
Of course, MiFID II and its call for increased transparency throughout the value chain has played a transformational role in the European fund market, accelerating the demand for such execution platforms.
While asset managers rely on fund platforms to get access to predefined distributors, distribution service providers such as private banks, insurance companies, and pension funds are using the platforms to select funds and execute trades and purchase funds from asset managers.
Distributors benefit from the maximum advantages of using a centralized service provided by the platform: access to a broad list of reliable investment solutions, customised reporting and an optimised operating model.
How ACOLIN becomes an asset manager's main partner
ACOLIN’s business model enables the asset manager to gain access to the most relevant fund platforms. Furthermore, ACOLIN ensures that asset managers meet all regulatory and legal requirements set by the regulator in the specific country, and technical requirements are fulfilled by the fund platform.
With a continuously expanding distribution network, ACOLIN is an asset manager`s dedicated counter party for optimised and compliant cross-border fund distribution.
There is significant pressure on asset managers to guarantee that all compliance, regulatory, and contractual requirements are met, if no distribution platform is being used.
For each distributor, the asset manager is required to:
- Perform a full due diligence
- Complete onboarding
- Negotiate terms and conditions
- Provide ongoing documentation
- Supply compliant static fund data in a specified format
- Reconcile commissions
- Initiate commission payments
- Ensure AML & CTF oversight
As a result, asset managers are facing a multiplication of tasks with each additional distributor.
In this respect, an agreement with ACOLIN comes into its own. ACOLIN offers asset managers a unique and tailored set of services for cross-border fund distribution.
It reduces the multiplication of tasks with each distributor, the asset manager signs just one single cooperation agreement and ACOLIN becomes the asset manager`s main counter party.
What components that ACOLIN manages:
- Integration of the asset manager’s funds in ACOLIN’s existing distribution agreements
- Onboarding, contract negotiation, and legal maintenance with distribution partners
- Country fund notification, registrations & regulatory compliance oversight
- Commission calculation, reconciliation and execution of payment
- Data and document management
With a continuously expanding distribution network, ACOLIN is an asset manager`s dedicated counter party for optimised and compliant cross-border fund distribution.