Commcise, provider of integrated commission management and research evaluation solutions for investment management firms, has entered into a partnership with Royal Bank of Canada (RBC), one of North America’s diversified financial services companies. The two companies will provide a technology and service offering that enables research funds to be held in a segregated Research Payment Account (RPA) established in the name of a buy-side client.
Commcise technology will provide a broker-neutral, independent and un-conflicted platform to facilitate management of the research payment process by buy- and sell-side firms. RBC, which has one of the highest credit ratings of banks globally, as well as one of the strongest capital bases and balance sheets, will hold segregated accounts in each individual buy-side firm’s name and will ensure payments for research are made in an efficient and timely fashion, at the discretion of the individual firm.
Under the new regulatory framework, buy-side firms will be required to integrate many areas of their existing business processes including; funding, budgeting, research evaluation and accounting, reporting, and controls and governance. The MiFID II Research Payment Solution will provide these buy-side clients with the tools to accurately track funding and consumption against allocated research budgets at desk and fund/client level whilst ensuring that the research received is appropriately evaluated.
Graeme Pearson, Head of European Equities, RBC Capital Markets commented: “Ensuring an un-conflicted and client aligned approach is essential. We are therefore setting up a specialist Research Payment Account team, managed independently from RBC’s traditional brokerage offering, to ensure the efficient and timely processing of research payment obligations for buy-side clients globally who are looking to address the needs of MIFID II.” He added: “The Commcise team understand the buy-side challenge and working together, we are providing a completely integrated and, most importantly, transparent RPA solution.”
Amrish Ganatra, CEO at Commcise, stated: “We are excited to work with RBC to jointly offer buy-side clients with a solution that allows the highest standards of transparency and compliance possible.” He added: “This partnership with Royal Bank of Canada leverages the strengths of independence and quality that both firms represent.”