Fenergo, a provider of customer lifecycle management software, has extended the model of its Client & Counterparty Data Management solution to capture and manage additional reference data that is essential for compliance with regulations such as the Foreign Account Tax Compliance Act (Fatca), Dodd-Frank, the European Market Infrastructure Regulation (EMIR) and Markets in Financial Instruments Directive (MiFID) II. The extended model also lays data management foundations for future regulation.
The enhanced solution was introduced at the A-Team Group Data Management Summit in London last week and is designed to help financial institutions improve the quality and accessibility of client and counterparty data needed to meet regulations that demand a high level of compliance based on the ability to identify and classify data.
The solution is built on legal entity data management and can extract data from data silos, supplement the data with additional reference data and deliver a logical, single source of data for all legal entities. It includes adaptors for integration with an organisation’s core vendor systems, for example trading systems, as well as with third-party data providers, aggregators and document repositories, allowing legal entities and their data hierarchies to be captured, managed, tracked and visualised. Fenergo algorithms roll up legal entity data and a configurable rules engine based on entity jurisdiction, procedures and documentary evidence supports regulatory compliance.
Dan Murphy, chief operating officer at Fenergo, explains: “There is commonality in regulations such as Fatca, EMIR, MiFID II and Dodd-Frank. The enhanced Fenergo Client & Counterparty Data Management solution aims to meet the regulations’ requirements in one go, rather than requiring separate workflows for compliance with each regulation. The commonality is a look-back process that identifies, captures, cleans and de-duplicates legal entity data. This data can then be used with Fenergo’s algorithms and rules engine to help meet compliance requirements.”
The software can be used as a master or slave to provide unique legal entities and their associated data and is ready to accommodate the legal entity identifiers (LEIs) of the global LEI system mandated by the G20 and being prepared for full-scale operation.
Marc Murphy, CEO of Fenergo, says: “The role of client and counterparty risk management is set to assume greater strategic importance in light of new regulations coming on stream over coming months. We’ve seen in our own Fatca research that financial institutions are struggling with gapped and siloed data, making the process of compliance hard to achieve. Our enhanced Client & Counterparty Data Management solution is designed to help financial institutions accurately measure risk exposure and comply with regulations. By making legal entity data as easily accessible as possible in the correct, standardised format and available on demand, financial institutions can ensure they are meeting their obligations under all the various regulations.”
These are early days for Fenergo, a spin-off from UK and Ireland systems integrator Ergo that has been maturing bespoke client onboarding solutions initially developed by Ergo into a product offering for capital markets participants over the past five years. Client & Counterparty Data Management joins Enterprise Compliance Management and the company’s Client Onboarding Lifecycle Tool on Fenergo’s enterprise platform that delivers a complete solution for managing new and existing clients, data, documentation and regulatory requirements. To date, the privately owned company has secured towards a dozen clients in the UK, US and Europe, and has its cites on the Canadian market in the short term and, longer term, on the Asia Pacific market.
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