MiFID II portfolio cost analysis added to Defaqto Engage

25 September 2019

To further help you meet regulatory requirements, we have extended the capability of Engage, our end-to-end financial planning software, with the addition of in-depth MiFID II portfolio cost analysis functionality.

Since 2018, MiFID II target market and cost data has been available within Engage’s investment workflows, allowing users to filter and compare funds on MiFID II costs. In a bid to further help you meet regulatory requirements, our latest release to Defaqto Engage now includes a complete breakdown of MiFID II costs within its portfolio builder.

As well as being able to establish if a portfolio/fund(s) matches the client’s agreed risk level, users will be able to view a full MiFID II compliant cost breakdown based on the value of their client’s investment.

Users can now view:

  • One-off costs – maximum costs incurred when entering or exiting the fund e.g. charge maximum entry cost, acquired maximum exit fee and the maximum cost acquired.
  • Ongoing costs – the annual management charge and other fund expenses e.g. custodian fees, audit fees, legal fees, marketing distribution and costs of underlying investments.
  • Transaction costs – costs incurred when buying or selling underlying investments. Includes both explicit costs e.g. dealing commission and implicit costs such as slippage.
  • Incidental Costs – The impact of any performance fee.

Easy and efficient

“Compliance and regulatory change will continue to be a challenge in financial advice, as such we review and update our software solutions regularly. At Defaqto, we want to ensure that we make it as easy and efficient as possible for our users to ensure they’re always compliant” Paul Dagley-Morris, Chief Technology Officer, says.

“This latest update arms advisers with access to even more information to further assure compliance. Whether an adviser is recommending a new portfolio or reviewing a client’s existing investment, Defaqto Engage users can now see a full breakdown of MiFID II Costs” he adds.

You can learn more about our end-to-end financial planning tool, Engage Core, or request a free trial, here.

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