inSPire launches first centralised utility to mutualise due diligence costs for structured product industry

May 2019 (London): inSPire, Delta Capita’s specialist Structured Products service offering, has launched inSPire Due Diligence, the industry’s first utility focussed on the ‘Know Your Distributor’ due diligence process. The utility is now live producing distributor due diligence for global investment banks.

inSPire Due Diligence agreed a common standard for Due Diligence Questionnaires (DDQs) and provides a centralised team of structured product specialists who collect, produce and monitor the due diligence data on behalf of participating structured product issuers, mutualising benefits of a centralised industry solution.

MIFID II has crystallised regulatory expectations and placed further obligations on issuers and distributors to evidence appropriate due diligence and information sharing to satisfy Know Your Distributor requirements. Without an industry standard for Due Diligence Questionnaires, the industry is needlessly duplicating effort to design, populate and remediate DDQ forms in-house.

The inSPire Due Diligence utility transforms this, eliminating the unnecessary duplication of DDQ design, production and monitoring, and significantly speeding the process up for issuers and distributors who can re-allocate internal resource to higher value distributor governance insights and decision making.

inSPire’s Due Diligence utility is the result of collaboration between its specialists and leading investment banks to agree a common template, process and standards. The utility offers a shared centralised resource to facilitate the flow of due diligence information between distributors and permissioned issuers.

The utility has been designed to minimise the resource impact on both issuers and distributors and comes after a rapid expansion of inSPire’s structured products managed services business. This includes the successful launch of inSPire Direct, an end to end structured product issuance platform.

Mark Aldous, Managing Director at inSPire, said:

“We are constantly looking for opportunities to drive efficiencies across the industry and there is now a genuine openness for mutual solutions to shared problems.

This new utility represents part of a much wider vision to use our track record as trusted structured products experts to bring the market together, creating common standards, mutualising costs and generating efficiencies.

inSPire Due Diligence is delivering much needed standardisation and streamlining of processes that deliver enhanced due diligence and service levels. Issuers who use the utility receive comprehensive Due Diligence produced to a market leading standard. For Distributors it will reduce their administrative overheads when responding to multiple issuer requests for the similar information throughout the year.”

Joe Channer, CEO, Delta Capita, said:

“This is another example of inSPire and Delta Capita bringing together market participants in an exciting new initiative for the mutual benefit of all participants. inSPire’s Due Diligence service will deliver significant efficiencies and cost reductions to the market at a time when it is most needed.”

Chris Platt
Director at inSPire

inSPire provides a unique range of tools to support structured products manufacturers through the issuance process, including platform management, legal and regulatory advice, product governance and issuance and lifecycle support.

Want to know more about inSPire Due Diligence and our wider Product Governance services, then please get in touch.