PREMIUM SPONSORS 6 March 2017 2 irishfunds.ie SPONSORS 6 March - - PowerPoint PPT Presentation

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irishfunds.ie

6 March 2017

PREMIUM SPONSORS

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irishfunds.ie

6 March 2017

SPONSORS

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irishfunds.ie

Irish Funds Toronto Seminar

6 March 2017

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irishfunds.ie

Chairperson, Irish Funds

Alan O’Sullivan

Welcome Address

Brown Brother Harriman

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Moderator: Panellists:

irishfunds.ie

Evolution of Product Design and Distribution

Panel Discussion

Oliver Murray, Brandes Jonathan Planté, Innocap Investment Management Inc. Padraig Kenny, RBC Dan Forbes, DMS

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irishfunds.ie

Tony Spratt, McCann Fitzgerald

Brexit Update

Brexit

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irishfunds.ie

Typical Fund Structure (1)

Fund Investment Manager

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irishfunds.ie

Typical Fund Structure (1)

• Fund is the manager – either self-managed investment

company (SMIC) under UCITS or AIFM under AIFMD

• Fund delegates to investment manager
• Investment manager must be “authorised or registered …

and subject to prudential supervision” under UCITS or “subject to supervision” under AIFMD

• => no change

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irishfunds.ie

Typical Fund Structure (2)

Fund (Corporate) UCITS Manco / AIFM Investment Manager

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irishfunds.ie

Typical Fund Structure (2)

• If the UCITS Manco/AIFM is in the EU => no change
• If the UCITS Manco/AIFM is in the UK => replace with EU

entity

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irishfunds.ie

Cillian Leonowicz, Deloitte

Regulatory Reporting Project

Irish Funds Blockchain

Dublin, January 2017

Irish Funds “Project Lighthouse”

BLOCKCHAIN & REGULATION

Since the GFC Regulators, across the globe, have acted to increase financial stability whilst protecting the investor. This has resulted in an increasing regulatory burden which is impacting the bottom line.

REGCHAIN – CONTEXT & BACKGROUND

Increasing Regulatory Requirements – A Varied Industry Response

Additional Resource Offshore Re-engineer Shoe Horn Excel

Add resources and teams to existing capability to meet the new requirements Move functions and teams to lower cost centres to help manage the cost of servicing Re-engineer internal processes for more effective regulatory processing Shoe horn new and regulation bespoke solutions into the legacy system architecture Develop working models in excel for the completion

• f regulatory reports

Result

Increasing Servicing Cost Lower Profitability No Real Customer Differentiation

MMIF is the primary control for Irish Domiciled Funds into the Central Bank of Ireland. It is reported on a quarterly basis and populated via Microsoft Excel.

REGCHAIN – MMIF: A CASE IN POINT

As-Is Process

Transfer Agent Regional Regulator Domestic Regulator Process Challenges Estimated Cost

Data Extraction Maker Review Control Checks Beta Checkers Submit via ONR

Manual Processing Data Integrity Regulatory Changes Cost

400 90 600

Total Irish Domiciled Funds Average time (in minutes) taken to complete process Total hours spent completing MMIF reports per Quarter

43.5 14

Total hours available to complete MMIF reports Number of resources required for MMIF/qtr

x = ÷ =

Number of resources required Annual cost for non- revenue generating MMIF report**

€840K 60K

x =

Our vision is operational efficient regulatory reporting, providing insightful analytics whilst increasing transparency, auditability and overall industry safety.

REGCHAIN – OUR VISION

Admin 1 Admin 2 Admin 3 Admin N Domestic Regulator Regional Regulator

Data Integration Services / Interfaces

• Access to submitted

regulatory reports

• Ability to run industry

level analytics both domestically and regionally

• Have a single view of

data

• Ability to receive

industry level and firm level analytics in line with data privacy

• Streamline regulatory

reporting

• Create an immutable

repository for all fund information

• A RegChain that is

regulation agnostic

• Central point of change

for new regulatory updates

REGCHAIN – Funds Blackbox

Reports Engine Smart Contracts Permissioned Blockchain Immutable Ledger Analytics Engine Document Storage

REGCHAIN – OUR PROOF OF CONCEPT FOCUS

Our vision is operational efficient regulatory reporting, providing insightful analytics whilst increasing transparency, auditability and overall industry safety.

REGCHAIN – Funds Blackbox

Admin 1 Admin 2 Admin 3 Admin N Domestic Regulator Regional Regulator

Data Integration Services / Interfaces

PoC Focus

Reports Engine Smart Contracts Immutable Ledger Analytics Engine

Platforms

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Document Storage

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Upload data to the RegChain Encrypt and store data with IPFS Maker reviews data and runs report Executes requirements of the regulation Checker reviews and submits to the regulator Regulator reviews filings and assesses industry analytics

Permissioned Blockchain

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Streamlining compliance with ancillary benefits for industry.

REGCHAIN – THE BENEFITS

The Benefits

Process Efficiency Security Analytics

Access IFPS Decrypt the file Modify the file Encrypt the file Access to RegChain Modify Smart Contract Network accept modification

To hack the proposed technical structure of RegChain you must:

DEMO

SEE THE DEMO AT OUR STAND DEMO

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Moderator: Panellists:

irishfunds.ie

Practicalities of operating efficiently and effectively today and considerations for 2017 and beyond. Deliberations to include: CP86, MIFID II and BEPS

Regulatory Update

Lynn McGrade, BLG Andrea Kelly, PwC Cormac Commins, William Fry Mark Browne, Dechert

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irishfunds.ie

Kieran Fox

Closing Remarks & Thank You

Irish Funds

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irishfunds.ie

6 March 2017

PREMIUM SPONSORS

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irishfunds.ie

6 March 2017

SPONSORS

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irishfunds.ie

Kindly Sponsored by Northern Trust

Networking Drinks