MiFID II Research billing and invoicing – towards total transparency

Whether you’re on the sell side or the buy side, with MiFID II on its way in 2018 greater transparency over research consumption and billing is going to be essential. Fortunately, Meritsoft solutions will help you comply – and they’ll bring you major business benefits as well.

Historically, the research billing and invoicing process has involved limited automation, authorisation processes, and audit trails. Individual invoices are generated retrospectively and any follow-ups would have to be done one at a time, with no automated tracking and chasing. It’s all time-consuming and inefficient, from the sell side point of view.

On the buy side, there are even more complications, given the fact that you are dealing with a number of different variables. Setting budgets at the start of the year, allocating them, handling multiple research suppliers and brokers is just the start of it.

You also have to be able to see the invoices coming in, to pay them, and to apportion different amounts to the various funds that benefitted from particular pieces of research. In one-quarter alone you could easily be dealing with tens of funds, all benefitting to different extents, and from varying pieces of research by multiple suppliers, all of which you have to collate, quantify, allocate and process.

All of the above has to be managed with full transparency to satisfy the end investors and the regulator.  Likewise, transparency and clarity are important from the point of view of your own organisation, not least to be able to ascertain the exact state of your budgets and where your Research Payment Accounts (RPAs) stand at any one time.


One system, many benefits

Fortunately, all of the above and more can be managed by Meritsoft solutions, whether you are on the buy or sell side of the equation.

All aspects of the research billing and invoicing process are fully recorded, trackable and transparent, to help ensure it fully complies with MiFID II.  Our software will also deliver real operational efficiency and management information where you want it when you need it, and in the format you require.

Like all our Intelligent Process Automation (IPA) software, it’s quick to deploy and easy to adapt and integrate, especially as everything is built within FINBOS, our established software platform.

Small wonder that several Tier 1 global financial institutions are already implementing it for their research billing and invoicing. Look out for more information on these in our next post or two.


In the meantime, for further information, please email mifid2@meritsoft.com  or call  UK +44 20 3865 4641 or  US +1 (646) 926-3748