Delta Capita Structured Products...
Transcript of Delta Capita Structured Products...
© COPYRIGHT 2015 Delta Capita Limited | CONFIDENTIAL
Delta Capita Structured Products Services
2 © COPYRIGHT 2017 Delta Capita Limited | COMMERCIAL IN CONFIDENCE
✓ Global Practice – Offices in London, Amsterdam, Hong Kong, Singapore & Johannesburg.
✓ Over 120 employees globally.
✓ Specialists in Business & Technology Consulting and Managed Services.
✓ Delivering solutions based on operational realities and the day-to-day challenges businesses face.
Company Overview
Experienced Professionalswho have worked at senior levels in complex matrix organisations around the world
Attitude and Understandingour consultants accept the realities of the business environmentlimitations in budget, capacity, capability and time
Our clientsall sizes of investment banks, commercial banks, retail banks, investment managers and insurers
Focusthe financial services sector
Delta Capita – who we are
3 © COPYRIGHT 2017 Delta Capita Limited | COMMERCIAL IN CONFIDENCE
Structured Products and Product Governance Managed Services
Structured Products
Transaction Management
Documentation Drafting and Automation
Issuance and Lifecycle Management
Product Governance
Framework & Committee Administration
Transaction & Target Market Review
Performance Monitoring & Due Diligence
SRP Consulting
Regulatory Advisory and Delivery
Change Implementation
Technology Design and Integration
Managed Services Overview
✓ Product Governance as a Managed Service originally launched in 2015 to support enhancement of a clients governance framework.
✓ Service expanded to cover aspects of Structured Product issuance including specialist documentation and transaction management support in 2016.
✓ Appointed by a Consortium of 7 Tier 1 product manufacturers to coordinate implementation of a shared PRIIPS solution.
✓ Structured Product capabilities significantly increased with over 30+ structured products staff and a senior experienced management team through announcement of lift-out transaction.
What we do
STRUCTURED PRODUCT AND PRODUCT GOVERNANCE MANAGED SERVICES
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TRANSACTION MANAGEMENT
Coordinating all pre-issuance steps required for both public offers and private placements
Providing specialist jurisdictional knowledge for effective issuances across multiple countries
Subscription processes and set up with paying agents and local clearers
REGULATORY FILINGS & EXCHANGE LISTINGS
Co-ordinating regulatory filings across multiple European jurisdictions
Completing issuance listing applications for various regulated and unregulated exchanges
Offering SME knowledge on issuer and market maker exchange obligations
LIFECYCLE MONITORING
Post-issuance lifecycle management, reportable event monitoring and notifications
Ad hoc support for queries and issues raised in relation to existing issued products.
Early terminations, tear ups and noteholder notifications monitoring
Product Issuance and Lifecycle
Pre-trade feasibility and execution guidance to Sales, Structuring and Trading functions
Co-ordinating and facilitating complex transactions
Providing expertise to support manufacturers expand into new distribution channels, new jurisdictions and new business development
Reviewing transactional adherence to internal policy and governance framework
The Structured Products market provides manufacturers with a complex mix of local requirements, with different product wrappers, settlement venues and listing exchanges across jurisdictions. Delta Capita has many years of pan-European experience, enabling our clients to operate efficiently in multiple jurisdictions.
Transaction Management
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DOCUMENTATION AUTOMATION SERVICES
Development of automated Termsheets, Final Terms, Pricing Supplements and PIBs
Maintenance of automated documentation to address disclosure supplements and annual prospectus updates
Enabling real-time documentation generation
PROSPECTUS CREATION & MAINTENANCE
Ensuring manufactures have issuance Prospectus covering complex structured payoffs and multiple asset classes
Coordinating disclosure supplements, annual updates and enhancements to payoffs
Pre-sales guidance on product coverage and appropriate prospectus selection
JURISDICTIONAL VARIATIONS
Providing pre-trade guidance on drafting requirements and timelines for issuance and public offerings
Co-ordinating multiple translations of the Summary and local passporting
Ensuring that local consumer protection laws and exchange requirements are addressed within the Prospectus
Transaction Documentation and Prospectus
Drafting of transaction documents including Termsheets, Final Terms, Pricing Supplements, PIB’s and KIDs
Maintenance of documentation template libraries including Distribution Agreements and Fee Letters
Co-ordinating engagements with external counsel for drafting of complex transactions
Prospectus Directive rules require manufacturers to maintain complex structured product prospectuses capable of pan-European offerings. Delta Capita help firms address these requirements and issue products efficiently in compliance with regulation.
Legal Documentation
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DUE DILIGENCE
Independent distributor and manufacturer due diligence including questionnaires and research
Ongoing monitoring of changes, negative news and regulatory actions
Periodic review including monitoring activity against target market
PRODUCTS
Documenting approved products and criteria for categorizing
Bench marking against industry for peer comparison
Period review including live product analysis and product complaint monitoring
TRANSACTION & TARGET MARKET REVIEW
Managing transactional approvals including review of activity against approved products, distributor lists and review of target market
Analysing stress testing results against intended target market
Marketing material sample testing and review
LIFECYCLE MANAGEMENT & MONITORING
Monitoring live product performance and performing periodic product reviews
Reviewing sales activity and monitoring distributors / manufacturers
Tracking complaints and resolutions, and producing analysis data
Governance Framework and Administration
Providing governance committee organisation, administration and record keeping
Co-ordinating product approvals and distributor / manufacturer on-boarding
Producing management information and reporting, trend analysis and bench marking
Generating target market needs analysis and consumer testing
Good product governance is central to any successful structured products business and regulators expectations have been set out in guidance and regulation. Delta Capita helps firms to build and maintain the highest standards in product governance for multiple jurisdictions whilst operating efficiently and effectively.
Product Governance
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REGULATORY CONSULTING
Guidance and testing on Key Information Documents including Payoff Description, Risks, Costs and Scenarios
Design and review of Product Governance policy, framework and controls to meet MIFID II requirements)
Industry collaboration in the response to “PD3” consultations
TECHNOLOGY IMPLEMENTATION & INTERGRATION
Design of automated end to end structured products infrastructure.
Assist with developing and coordinating internal UAT testing programmes for significant deliveries
Providing a QA service on external vendor developed solutions
CHANGE IMPLEMENTATION
Project management and implementation with specialist product expertise.
Organisational restructuring and legal entity rationalisation
Managing system migrations and complex product structure facilitation
Advisory and Project Delivery
Leveraging Structured Products and governance expertise to develop solutions to complex regulatory change
Delivery of processes and technology changes to support new regulations such as 871(m), PRIIPS ad MIFID 2
Delivery of business change and new business initiatives
Establish and run industry working groups (PRIIPS consortium, PLATO Partnership) driving consistency and benchmarking
By adopting a consistent approach to regulatory requirements and standardising processes, the industry can improve operational efficiency and reduce costs. Delta Capita can leverage its expertise in this area by providing advice and support to industry participants.
In addition to regulatory and business change delivery we can also offer project management services for stand-alone projects, initiatives and business reviews.
SRP Consulting Services
BACKGROUND TO MANAGED SERVICES
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Managed Services – Structured Products
Creation of Structured Product Managed Service
▪ Lift-out of an experienced team completed and announced jointly with client.
▪ Transaction was managed through feasibility assessment, competitor analysis, internal announcement, TUPE transfer and implementation.
▪ All staff retained and no impact to service delivery during the transition.
Structured Product capabilities
▪ Delta Capita now has over 30 experienced Structured Products professionals supporting our range of services.
▪ Includes a senior management team with average 10+ years of hands-on Structured Products issuance experience.
▪ Service expansion across multiple clients.
▪ Managing a Consortium of 7 Tier 1 product manufacturers to coordinate implementation of a shared PRIIPS solution.
▪ Additional PRIIPs based services now available.
Transaction Management
Documentation Automation and Drafting
Issuance and Lifecycle Management
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Managed Services - Product Governance
Existing Product Governance Service
▪ Service provided to a Tier 1 structured product manufacturer supporting all administrative aspects of their governance framework.
▪ Service introduced in response to regulatory scrutiny and a requirement for comprehensive governance without increasing headcount.
Product Governance capabilities
▪ Experienced team, familiar with regulatory expectations but capable of practical business application
▪ Available onsite with clients but supported by a low cost centre of excellence in Johannesburg
▪ Mifid II compliant governance framework design available including implementation planning
▪ Provide seamless transition to the new Mifid II governance framework, with training and onsite support.
Framework & Committee administration
Transaction & Target Market Review
Performance Monitoring & Due Diligence
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Managed Services – Delivering value
Managed Service can reduce existing fixed costs, reduce permanent headcount and reduce barriers to entry to new markets whilst increasing the quality of the services.
By developing a high quality service offering with experts in the location of our clients, managed on specialist technology and leveraging economies of scale, value is delivered to our clients:
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Delta Capita provides industry experts accessible to clients onsite
Cost of retaining expertise is mutualised and charged on a pay for use basis
Expertise moves from a clients cost centre expense becoming a core service at Delta Capita
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Delta Capita investment in specialist technology to run services
Clients reduce their technology run costs and eliminate future investment
Clients reduce the complexity of their technology stack
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Scale of Delta Capita operation enables investment in process efficiency
Creates potential to leverage low cost processing centre's
Enables opportunity for benchmarking and industry standardisation
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Office Locations
Asia OfficesHong KongTel | +852 5500 013328th Floor, AIA Central1 Connaught RoadCentral Hong Kong
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South Africa OfficeJohannesburgManaged Services HubTel | +27 (0)20 900 20133 Lower roadMorningsideSandton 2196South Africa
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Asia Office – Singapore
Tel | +65 6809 5113
12 Marina Boulevard#17-01, Marina Bay Financial Centre Tower 3Singapore, 018982
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Head Office – London
Tel | +44 (0)203 714 1870
2nd Floor40 Bank StreetLondonE14 5NRUnited Kingdom
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Benelux Office – Amsterdam
Tel | +31 (0) 20 233 9314
Bijlmerdreef 1011102BP AmsterdamNetherlands
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Our offices