The main objective is to allow funds’ distributors to only offer suitable products to investors and to inform them on the cost structure of their investment.

The European MiFID Template (EMT) is a standard format for MiFID-II compliant reporting and disclosure of data.

Since January 3rd, 2018, product manufacturers must provide additional information regarding the target market for each investment product, as well as costs and charges.

AlphaOmega have built a sophisticated operating model including a data management desk that standardises the data output from the diverse raw data and formats received from fund administrations and others actors.
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The key challenge is to disclose in a transparent manner the costs and charges both ex-ante and ex-post.          

AlphaOmega have put in place an automated process to produce your European MiFID Template in the latest version (currently the 4.0) while keeping solid consistency checks.

Please find below a quick overview and the main steps of our Target Operating Model (TOM):

• Data collection: AlphaOmega receives and analyses all the legal documentation such as prospectus and KI(I)Ds as well as NAV historical data, portfolio and costs history in order to identify the investment strategy and other general portfolio information.
• Set-up Phase: Based on the legal documentation, AlphaOmega identifies the investment strategy and other general portfolio information.
• Data analysis: AlphaOmega makes sure that the data are consistent and none of them are missing in order to calculate the performance scenarios and handle the risk assessment part. 
• Collection of transaction costs history over 3 years as well as the others expenses over the last year in other to calculate transaction costs and ongoing costs. 
• Report generation: AlphaOmega aggregates the data in order to produce the EMT file in csv. 

EMT includes regulatory requirements under MiFID II:

The characteristics, known as Target Markets, that allow the distributors to match their clients’ profiles and preferences with the right funds.
The breakdown of costs to inform their customers of the amount they can expect/actually pay for their investments.

AlphaOmega is now at the version 4.0 of this template and it will be applicable from August 2022.