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fundinfo DOR white paper

New White Paper - Distributor Oversight Reporting

January 04, 2019 | Company | News | Businesspartner | Front | Platform | etfinfo |

With the introduction of MiFID II, fund providers must now oversee their distributors and sub-distributors to ensure compliance with their distribution strategies and ensure that they are selling their funds to appropriate clients. This is known as “Distributor Oversight Reporting” (DOR) and is a break from the past when distributors could be tasked to sell the right funds to appropriate investors.

Although the European Securities and Markets Authority (ESMA) mandates distributor oversight reporting, only high-level, top-down guidelines are specified. It is thus up to Fund Distributors and Fund Houses to define how to send, receive and process DORs. To practically implement DOR and allow for meaningful interpretation of reporting data, a precise, bottom-up description of all possible information fields associated with DOR needs to be defined and adopted across the fund industry.

The openfunds association (www.openfunds.org) is addressing this issue for DOR standardisation by extending the openfunds standard for the characterisation of investment funds to include information fields covering DOR. For an overview of DOR and the openfunds initiative to address it, download the white paper “Distributor Oversight Reporting: ensuring MiFID II Target Market compliance”.

As a founding member of the openfunds Association and active contributor to the openfunds standard, fundinfo will be releasing a DOR upstream solution based on openfunds during 2019.