The TierDrop software service was launched to market by Australian technology business FinoComp in December 2017 and is a solution to the rule that clients must be notified within 24 hours if a discretionary managed portfolio falls 10% or more in a reporting period.
The software facilitates communication of individual client investment details between wealth management platforms, discretionary fund managers (DFMs) and intermediary groups.
TierDrop provides advisers, platforms and DFMs with the data required to meet these new reporting requirements in a standalone module and displays all the data in an intuitive, configurable and consistent performance calculation tool.
Built in ‘danger zone’
Ray Tubman, chief executive at FinoComp, said: “Since the adoption of the legislation, DFMs are now responsible for reporting losses to investors within 24 hours, fundamentally however many DFMs are not in possession of the core data to enable either the calculation or the reporting of these events.
“TierDrop provides comprehensive accurate calculations and intuitive reporting on a daily basis with visibility across all models. It will also take into account all capital events such as withdrawals, deposits and re-registrations, will have a built in ‘danger zone’ functionality highlighting where portfolios are nearing the 10% reduction in value. It provides an overview of not only accounts in a loss position but also shows where has been an increase in value in the form of a complete performance dashboard.”
Tubman continued: “Since we went live with the service the feedback we have received has been fantastic. We have had significant interest in the TierDrop module and are really pleased to be supporting Novia in enhancing their DFM solution.”
Comprehensive suite
Bill Vasilieff, chief executive at Novia, said: “We continue to see a sharp rise in advisers looking to outsource their centralised investment propositions and we are always looking for ways to provide innovative solutions to support this.
“TierDrop is highly intuitive and configurable service, which provides not only a clear solution to the Mifid II requirements but also a fully comprehensive advanced reporting service.
“The development of this service is also a significant step towards developing a more streamlined and automated communication solution between platforms, DFMs and advisers.”
