The Investing and Saving Alliance’s (TISA) new digital utility business for the asset management industry will cut data and analytics costs by between 80 to 90 per cent per annum from year one.

This claim comes as asset management firms are having to significantly reduce costs because of COVID-19’s impact on global markets and the uncertainty around a ‘second wave’ of lockdown.

Firms participating in the TISA Universal Reporting Network (TURN) have revealed that to date their data management costs average £200,000 per year. TISA stated that TURN will immediately reduce these costs to less than £30,000 per year, with a one off £15,000 joining fee (£18,750 for non-members).

The blockchain utility will already be accessible to 60 per cent of the market once it launches later this year. That is because Allfunds, Calastone, Deutsche Bank, Fidelity International, Link Group, MFex and Transact have already signed up to help with the advisory and testing phases of the new industry-wide platform.

Atos will operate the bespoke utility, which aims to provide a revolutionary and secure data exchange solution for the asset management industry.

Gary Bond, chief executive of TURN, said: “TURN is an extremely exciting initiative which will not only provide a solution for the collection and dissemination of regulatory data, but it will also save participating firms notable sums of money which could then passed on to the customer.

"This is an industry-led and run, not-for-profit initiative that will ultimately ensure that consumers are offered the best and most suitable products while lowering costs and time spent on admin for asset managers.”

TURN is on course to deliver a demonstration to the industry later this month, with the official launch due early in the fourth quarter.

Its ambition is to ease regulatory reporting requirements of MiFID II and will be available across Europe based on blockchain technology. All relevant parties will have access to the EMTs (European MiFID II Template) on a real-time basis. Currently, this exchange of information is inconsistent and sometimes firms struggle to obtain all the data they need from other firms to enable disclosure of all costs.

TURN should give better transparency of funds so that they can be more easily and accurately profiled. This will allow for better comparison between funds on both the genetic make up of the fund and its costs. The availability of more transparent profiling is in response to demands by retail investors and will also be of particular use when ESG reporting obligations become a requirement next year.

Andrew Lelliott, managing director of Link Fund Administrators and Link Financial Investments, said: “This industry-owned utility will drive efficiency, mitigate risk and reduce costs – and is grounded on our shared values of improving outcomes for consumers."

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