Robert Corben provides the latest update on the IMAP Data Standards Group, including the work being done on performance standards. With the rapid growth of managed accounts in the financial services Industry,
Robert Corben provides the latest update on the IMAP Data Standards Group, including the work being done on performance standards.
With the rapid growth of managed accounts in the financial services Industry, model data is being electronically distributed between all participants. However, currently no standard is in place for the definition or format of this data.
While platforms and other managed account structures have developed proprietary approaches to the provision of model data to them, investment managers report finding it difficult to meet these varying data requirements.
These challenges will only increase as the number of managed account services increases.
Other industries have already developed standard data transfer formats, with planning software being an example of widespread adoption of a single industry wide standard.
Since managed accounts are still a relatively new market, this seems the right time to establish a common standard.
IMAP has convened a representative working group from interested parties in order to deliver efficiencies to the industry. Representatives from approximately 21 organisations have been participating in meetings, have supplied relevant information and documentation, and have been actively reviewing working papers from this IMAP initiative. Each member of the working group is able to ensure that the business use of model data within their organisation is considered in the development of the standard.
While the standard will not be binding, it will provide a useful incentive to prevent further proliferation in proprietary specifications.
Objective
The objective of the Data Standards Working Group is to gain agreement from key industry participants – including platforms, research providers, investment managers and technology providers – of common data specifications and processes relating to managed accounts.
January 2019 status
Data Standard
The working group has reviewed the latest round of changes for the data standard. The working group is in agreement that we are now ready to move into specification development.
A version 1 specification is currently being drafted and will be presented to the working group in our next general meeting. This is currently scheduled for early February 2019.
Performance Standard
A number of participants in our data standards group expressed a desire to meet to discuss the benefits of collaborating on performance standards. The framework (objectives) of this is currently quite open and we are looking for the group to formulate the objectives, with IMAP being the facilitator. Currently, there is a lot of feedback around defining objectives relating to the platform implementation of models.
A formal request for participants has been forwarded to IMAP’s wider industry partners. The initial working party should consist of 6-8 firms. These span investment managers, investment platforms and research houses.
Confirmation of the participants and the working group’s objectives, will be announced in February 2019.
Robert Corben is the co-ordinator of the IMAP Data Standards Group.
