A “Common Application” For Compliance: Can 250 Research Providers Be Wrong?


We are launching a new service designed to make the compliance due diligence process easier and faster for research providers and their asset management clients.  The new service, called Compliance Telescope, already has over 250 brokers and independent research providers distributing compliance information to clients.

The central concept behind the new service is similar to the common application used by college-bound students to apply to schools.  We’ve developed a common questionnaire that consolidates all the redundant compliance questions posed by asset managers to their research providers into one consistent form that brokers and IRPs can fill out once and send out multiple times.

Asset managers like the approach because it saves them time and effort chasing their external research providers for responses.  Also, they are finding that the data is more timely and accurate because it is being used across multiple clients.

We are very fortunate to have teamed up with Castine Consulting, the developer of the new cloud-based service.  Castine was founded by Robin Hodgkins who originated Cogent Consulting, a market leading commission management solution whose products were sold to BNY Convergex.   Robin is a successful serial entrepreneur, and he and his team have come up with a very elegant web-based solution.

We are getting good feedback from the research firms using the platform because it is much easier to complete than excel-based questionnaires many clients use.   The questionnaire remembers previous responses, making the information easier to keep up-to-date.  The platform has robust permissioning, ensuring that the information only goes to clients and prospects approved by the research firm.

Like the common application used by colleges, asset managers can add their own proprietary questions which are unique to them.   Typically these custom questions relate to services provided to that particular client.

A major benefit for both research firms and their clients is a faster onboarding process using the new service.  Many asset managers require compliance information as a condition for adding a new research provider, and Compliance Telescope’s universal questionnaire can shorten the handoffs significantly, making the PMs/analysts on the buy side happy and helping research firms get paid more quickly.

There is no cost for research providers to use the system and asset managers can access the due diligence responses at no cost.  Additional features for asset managers such as custom questions, approval workflow, surveillance alerts, and internal notifications of vendor status require a license fee.

To learn more about the new service, go to http://www.castinellc.com/pdf/Compliance_Telescope.pdf.

If you’d like to try out the new service contact Tom Smith, sales@CastineLLC.com, 347-4-CASTINE.


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