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Guernsey Firm Launches New Asset Management Compliance Tool

by Jason Gorringe, Lowtax.net, London
11 January, 2018

Dorey Financial Modelling, a Guernsey-based actuarial technology firm, has developed an offering to help international asset managers provide calculations required under a new EU regulation.

The new Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation, which came into force at the beginning of the year, requires asset managers to adhere to new technical standards for key information documents (KIDs). This includes providing summary risk indicators, projected returns, and disclosure of costs for investment products.

The PRIIPs regulations aim to help retail investors understand and compare the key features, risks, rewards, and costs of different PRIIPs, through access to a short and consumer-friendly information document.

Penalties for not complying with the regulation range from being prohibited from marketing the PRIIP or significant fines. All new investment products and existing investment products marketing to retail investors in the EU will need to comply with the requirement for a KID.

Martyn Dorey, Managing Director of Dorey Financial Modelling, says creating the numbers required for a KID can be extremely complex.

"Product categorization, the range of financial outcomes, and costs can be complicated, and factors such as currency fluctuations, private equity, and fund wind-up dates come into play as well. All of this needs to be adequately explored with the product manufacturer and their legal teams, so we pay close attention and listen to the product manufacturers' forward-looking views. All KIDs require working closely with the product manufacturer to reflect their views of market practices and their expectations on risk," said Dorey.

Dorey Financial Modelling says it is working with a number of administrators to provide the underlying calculations featuring in the KID and has worked with international administrators and managers based in Canada, the US, Europe, and South Africa.

"Our long experience of specialized investment actuarial work means we have been well placed to deliver basic as well as very demanding KIDs," said Dorey.


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