Commission Agreements by emm19002

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									                                                              Business Benefit
                      Thought Leadership


                                             Project Delivery.




Commission Sharing Agreements
Changes in regulation and market practice over             provide a solution for their combined unbundling,
recent years have resulted in the growth in volume         commission sharing and "softing" requirements. Our
and sophistication of requirements to agree and            team has defined a full set of business requirements for
manage commission sharing and unbundling in the            the intended solution, as well as implementing
equity markets. Firms who cannot support these             immediate improvements in the current business
more complex arrangements and provide a simple,            process. As part of this exercise, we have been closely
efficient and transparent process to support their         involved with a wide range of internal departments              "Our old
clients’ needs are increasingly at a disadvantage in       including front office, settlements, finance and            process made
these ever more competitive markets. Even firms            legal/compliance and also with external discussions
who have traditionally coped with these types of           with other brokers, clients and fund managers. These       us reactive - we
arrangements using manually intensive processes
are now finding them difficult to scale and monitor
                                                           business requirements have fed through a package
                                                           selection into the full implementation and user
                                                                                                                      couldn't be sure
with any confidence.                                       acceptance testing which we are also running for the       we were getting
                                                           client. This successful project will complete shortly
                                                           when the system goes live.
                                                                                                                      all the payments
Common Issues- Pragmatic Solutions                                                                                    we should have"
MPI Europe engaged in project work and research on         Benefits
this topic across a range of financial institutions from
brokers to hedge fund managers. In this way we have        The benefits of improved commission sharing /
identified many common issues faced by firms and the       unbundling handling are:
pragmatic solutions that we can help clients implement.

                                                           §Ensure you meet all the governance
CSA Toolkit                                                 requirements with confidence
Since no two firms requirements are exactly the            § you cope with growing CSA volume without
                                                            Let
same, MPI Europe have developed a toolkit                   adding costs
approach with a mix of skills, experience and tools
to address the multiple requirements                       §Enable you to meet the reporting expectations
                                                            of the most demanding professional clients                "We need more
The toolkit includes;                                                                                                 evidence as to
                                                           §Make sure that your research receives the                  precisely why
§Health check and trend analysis                            reward it deserves
                                                                                                                         allocation
§Business requirements, reusing                                                                                         decisions are
 existing component definitions
                                                                                                                           made"
§
Process improvement either to existing
    process or replacement solution
    selection and implementation

§ definition for handling CSA, CCA
 Rule
 and soft commission agreements                                                                                                  MPI Europe
 including integration with finance /
 general ledger                                                                                                                     CityPoint
                                                                                                                          1 Ropemaker Street
User acceptance testing approach
                                                                                                                                     London
                                                                                                                                   EC2Y 9HT
Global Broker case study                                                                                                     United Kingdom
MPI Europe has been engaged by a global
                                                                                                                         Phone: 0207 1531 052
broker with offices in the US, Europe and Asia, to          Highest Level Process Flow
www.mpi-europe.com

								
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