Fund distribution platforms act as intermediaries between distributors and asset managers; typically performing administrative functions such as distribution agreements, order routing and rebate calculations.
Of course, MIFID II and its call for increased transparency throughout the value chain has played a transformational role in the European fund market, accelerating the demand for platforms. While asset managers rely on fund platforms to benefit from a unique entry point for distribution services, distributors (private banks, insurance companies, pension funds) are driving the choice of platform they will use to select and purchase funds from asset managers. Distributors benefit from the maximum advantages of using a centralized service provided by the platform: access to a broad list of reliable investment solutions, customized reporting and an optimized operating model.
ACOLIN becomes an asset manager`s main counterparty
There is a high burden on asset managers to ensure that all compliance, regulatory, and contractual requirements are met, if no distribution platform is being used. For each distributor the asset manager is required to:
- Do a full due diligence
- Complete full onboarding
- Negotiate terms and conditions
- Provide ongoing documentation
- Reconcile commissions
- Initiate commission payments
- Supply compliant data in specific format
As a result, asset managers are facing a multiplication of tasks with each additional distributor. For instance, an asset manager must negotiate and sign an agreement with each one of its distribution partners.
That is where an agreement with ACOLIN steps in. ACOLIN offers asset managers a unique and tailored set of services for cross-border fund distribution. In order to avoid a multiplication of tasks with each distributor, the asset manager signs one cooperation agreement and ACOLIN becomes the asset manager`s main counterparty.
- Country registrations & regulatory compliance
- Onboarding and contract negotiation with selected distribution partners
- Commission calculation, reconciliation and payment
- Information and document management
With a continuously expanding distribution network ACOLIN is an asset manager`s dedicated counterparty for optimized and compliant cross-border distribution.