Financial Risk Solutions’ expands its award-winning RegTech offering, Invest|GRCTM, with new module to automate production & publication of Key Information Documents (KIDs) in line with upcoming regulation
Financial Risk Solutions (FRS), a Dublin-based provider of unit-linked investment administration and compliance oversight software, has expanded its award-winning* “RegTech” offering, Invest|GRCTM (Governance, Risk & Compliance), with the launch of a module focusing on the upcoming PRIIPs regulation.
The regulation, which relates to Packaged Retail and Insurance-based Investment Products (PRIIPs), takes effect from January 2018 and will ensure that PRIIPs manufacturers are required to:
- • Prepare a KID for each PRIIP that they produce
- • Publish each KID on their website
The KID must clearly outline to consumers key features, risk, rewards and costs of each investment product, and must be provided in good time, before the consumer is bound by any financial decision.
Whilst the Key Investment Documents will be clear and easy to read for consumers (and in a pre-described format, bringing uniformity to the investment industry), the compilation of the KID is extremely complex for PRIIPs manufacturers.
Requiring quarterly updates to each KID based on the previous 5 years unit prices and current positions holding data, the KID also needs to demonstrate four performance scenarios showing the range of possible returns:
- a stressed scenario;
- an unfavourable scenario; â¨
- a moderate scenario; â¨
- a favourable scenario;
Invest|GRCTM for PRIIPs KIDs: Automated Production & Publication:
Frank Carr, Chief Marketing Officer at FRS commented; “In discussions with the industry we have found many companies are moving the new PRIIPs regulation close to the top of their agenda given it directly impacts new business from Jan 1st 2018. Several are grappling with the initial stages of in-house solutions albeit with assistance from group HQ in many cases. This is why FRS is now offering the whole PRIIPs module, or alternatively separate components of the solution depending on each specific insurers’ requirements and individual in-house competencies. Uniquely the FRS software caters for the complex requirements of both fund of funds PRIIPs and open architecture wrapped products.”
The Invest|GRC™ PRIIPs module is comprised of these components;
- SQL Database Repository To import, check, complete and hold all new data and archive all KIDs
- Calculation engine To compute using different data sets the complex calculations necessary for the production for all KIDs
- Reporting Tool For upload to website, broker interface, platforms and all sales channels.
- Ongoing Updating To existing products’ KIDs and the launch of new products’ KIDs
- Comparative risk metrics analysis To track changes in KIDs and apply sign-off rules and exception reporting using the FRS rules and breach engine.
In line with the rest of the Invest|GRCTM suite, the PRIIPs module will be available on-premise or hosted in the Cloud using Microsoft Azure. Also for companies familiar with the FRS software there are full sign-off and internal control processes wth audit trails, rules and breach oversight, archiving and date-stamping of all committed parts to the production of PRIIPs and KIDs.
*FRS is Tech Vendor of the Year: GRC in the 2016 Risk.net Buyside Awards for its Governance, Risk and Compliance software suite, Invest|GRCTM.
Founded in 1999 by actuaries and IT specialists, Financial Risk Solutions Ltd (FRS) is a leading provider of unit pricing, investment administration, asset reporting and compliance oversight software specifically designed for the Life Assurance and Asset Management industries.
FRS offer a proven range of modular, intuitive technology solutions which allow customers to pro-actively monitor and administer investments as well as mitigate risk by continually monitoring breaches and exceptions to critical investment processes. These solutions include:
Invest|Pro™ securely automates multiple complex fund administration processes within a single application. Invest|Pro™ unit-pricing and investment administration software is scalable, modular and flexible.
Invest|GRC™ empowers insurers and asset managers to meet PRIIPs and KID requirments along with Pillar III asset reporting standards in the Solvency II world via a single, analytics-driven database, combining data from internal and external sources.
Invest|OPS™ automates the validation of operational activity performed by outsourcing partners, enabling firms to supervise outsourced functions, data and to manage the associated risks.