PREMIUM SPONSORS 6 March 2017 2 irishfunds.ie
SPONSORS 6 March 2017 3 irishfunds.ie
Irish Funds Toronto Seminar 6 March 2017 4 irishfunds.ie
Welcome Address Alan O’Sullivan Chairperson, Irish Funds Brown Brother Harriman 5 irishfunds.ie
Panel Discussion Evolution of Product Design and Distribution Moderator: Dan Forbes, DMS Panellists: Oliver Murray , Brandes Jonathan Planté , Innocap Investment Management Inc. Padraig Kenny , RBC 6 irishfunds.ie
Brexit Brexit Update Tony Spratt, McCann Fitzgerald 7 irishfunds.ie
Typical Fund Structure (1) Fund Investment Manager 8 irishfunds.ie
Typical Fund Structure (1) Fund is the manager – either self-managed investment • company (SMIC) under UCITS or AIFM under AIFMD Fund delegates to investment manager • Investment manager must be “authorised or registered … • and subject to prudential supervision” under UCITS or “subject to supervision” under AIFMD => no change • 9 irishfunds.ie
Typical Fund Structure (2) Fund (Corporate) UCITS Manco / AIFM Investment Manager 10 10 irishfunds.ie
Typical Fund Structure (2) If the UCITS Manco/AIFM is in the EU => no change • If the UCITS Manco/AIFM is in the UK => replace with EU • entity 11 11 irishfunds.ie
Irish Funds Blockchain Regulatory Reporting Project Cillian Leonowicz, Deloitte 12 12 irishfunds.ie
Dublin, January 2017 Irish Funds “Project Lighthouse”
BLOCKCHAIN & REGULATION
REGCHAIN – CONTEXT & BACKGROUND Since the GFC Regulators, across the globe, have acted to increase financial stability whilst protecting the investor. This has resulted in an increasing regulatory burden which is impacting the bottom line. Increasing Regulatory Requirements – A Varied Industry Response Additional Resource Offshore Re-engineer Shoe Horn Excel Add resources and teams Move functions and teams Re-engineer internal Shoe horn new and Develop working models to existing capability to to lower cost centres to processes for more regulation bespoke in excel for the completion meet the new help manage the cost of effective regulatory solutions into the legacy of regulatory reports requirements servicing processing system architecture Result Increasing Servicing Cost Lower Profitability No Real Customer Differentiation
REGCHAIN – MMIF: A CASE IN POINT MMIF is the primary control for Irish Domiciled Funds into the Central Bank of Ireland. It is reported on a quarterly basis and populated via Microsoft Excel. As-Is Process Transfer Agent Domestic Regional Regulator Regulator Process Data Extraction Maker Review Control Checks Beta Checkers Submit via ONR Challenges Manual Processing Regulatory Changes Cost Data Integrity Estimated Cost x = = x = 400 90 600 43.5 14 60K € 840K ÷ Total Irish Average time (in Total hours spent Total hours Number of Number of Annual cost for non- Domiciled minutes) taken to completing MMIF available to resources resources revenue Funds complete process reports per Quarter complete MMIF required for required generating MMIF report ** reports MMIF/qtr
REGCHAIN – OUR VISION Our vision is operational efficient regulatory reporting, providing insightful analytics whilst increasing transparency, auditability and overall industry safety. - Access to submitted regulatory reports - Ability to run industry Domestic Regulator Regional Regulator level analytics both domestically and regionally - Create an immutable repository for all fund information REGCHAIN – - A RegChain that is Funds Blackbox Reports Smart regulation agnostic Immutable Analytics Permissioned Document Ledger Engine Engine Contracts Blockchain Storage - Central point of change for new regulatory updates Data Integration Services / Interfaces - Have a single view of data - Ability to receive industry level and firm Admin 1 Admin 2 Admin 3 Admin N level analytics in line with data privacy - Streamline regulatory reporting
REGCHAIN – OUR PROOF OF CONCEPT FOCUS Our vision is operational efficient regulatory reporting, providing insightful analytics whilst increasing transparency, auditability and overall industry safety. 6 PoC Focus Domestic Regulator Regional Regulator Upload data to the RegChain 1 Encrypt and store data with IPFS 2 Maker reviews data and runs 3 report 6 4 4 2 REGCHAIN – Executes requirements of the 4 Funds Blackbox regulation Immutable Reports Analytics Smart Permissioned Document Ledger Engine Engine Contracts Blockchain Storage Checker reviews and submits 5 to the regulator Regulator reviews filings and 6 assesses industry analytics Data Integration Services / Interfaces Platforms 1 3 5 Admin 2 Admin 1 Admin 3 Admin N
REGCHAIN – THE BENEFITS Streamlining compliance with ancillary benefits for industry. The Benefits Security Process Efficiency Analytics To hack the proposed technical structure of RegChain you must: Access to Modify Network accept Access Decrypt Modify Encrypt RegChain Smart Contract modification IFPS the file the file the file
DEMO
SEE THE DEMO AT OUR STAND DEMO
Regulatory Update Practicalities of operating efficiently and effectively today and considerations for 2017 and beyond. Deliberations to include: CP86, MIFID II and BEPS Moderator: Mark Browne, Dechert Panellists: Lynn McGrade, BLG Andrea Kelly, PwC Cormac Commins, William Fry 22 22 irishfunds.ie
Closing Remarks & Thank You Kieran Fox Irish Funds 23 23 irishfunds.ie
PREMIUM SPONSORS 6 March 2017 24 24 irishfunds.ie
SPONSORS 6 March 2017 25 25 irishfunds.ie
Networking Drinks Kindly Sponsored by Northern Trust 26 26 irishfunds.ie
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