Industry Updates

Merchant Capital rolls out pre- and post-trade compliance technology for its UCITS umbrella platform

Wednesday, April 20, 2011

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Opalesque Industry Update - Merchant Capital Ltd, the asset management division of AIM-listed Merchant House Group Plc, has launched the complete pre- and post-trade compliance applications for its UCITS umbrella platform. This announcement comes ahead of UCITS IV implementation on 1st July 2011, and provides a new generation of financial services software for Merchant’s clients.

Merchant Capital’s UCITS platform offers clients an easy-to-implement and easy-to-use software for pre-trade order entry and pre- and post-trade compliance checks, necessary under the new UCITS rules, while delivering more advanced functionality than any of its peers. These applications (or ‘Apps’) are hosted using cloud technology with no extra hardware required, this enables Merchant Capital’s clients to save on IT costs and concentrate on their core business.

This next generation of cloud-based compliance monitoring and reporting software provides full UCITS structure monitoring as well as major shareholding reporting, both pre & post-trade. Merchant Capital’s compliance ‘Apps’ offer the following tools: full breach workflow and document management, compliance stress testing and ‘what if’ scenarios, pre- and post-trade web services, XML in, XML out, open reporting interfaces, integrated data management tools and workflow, inbuilt major shareholding monitoring and online analysis of breaches and rule language that captures definitions of UCITS regulations and major shareholding limits.

Commenting on the launch of the new cloud-based technology George Cadbury, co-founder of Merchant Capital’s UCITS umbrella, said:

“Pre-trade compliance is set to be a key byword in the UCITS fund industry during the course of this year. Merchant Capital’s new pre-trade compliance system will be a critical tool for fund managers and COOs when adapting their funds to UCITS. It is essential for both regulators and investors to be comfortable with managers adhering to the UCITS rules and not just via being cognisant of breaches once the trade has already been carried out. This is particularly relevant to off-shore managers that are launching on-shore funds, having to acclimatise to a more prescriptive structure.”

He added: “With this new system managers will be informed in a time-sensitive manner as to whether their impending trade is compliant or not, before it is placed.”

Merchant’s UCITS umbrella structure allows asset managers to launch UCITS-compliant investment vehicles, typically hedge funds. Managers who use the Merchant platform are free to brand their products as they see fit, best reflecting the style and investment philosophy of their fund.

(press release)

Merchant Capital, which is authorised and regulated by the FSA in the UK, built a UCITS umbrella structure domiciled in Dublin in November 2009. Coupled with the extensive experience of its management team, clients are supported by some of the industry’s leading service providers whilst being provided with a cost-effective entrée to the UCITS market. Merchant has extensive structuring, investment management and systems expertise.

As investment manager of the UCITS Umbrella, Merchant will appoint the client as adviser or sub-manager of a sub-fund (“Cell”). This Cell will be managed according to the client’s instructions whilst Merchant manages the oversight, administrative, processing and regulatory functions. Independent trustees are appointed: a UCITS requirement and also a due diligence prerequisite for many investors. www.merchant-capital.com

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