Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Venture capitalists back fintech Mifid II compliance firm

Venture capitalists back fintech Mifid II compliance firm

A fintech firm helping fund managers negotiate Mifid II compliance challenges has received a cash injection from venture capitalists.

Illuminate Financial Management, a specialist venture investor in capital markets financial technology, has made a strategic investment into FeedStock, which filters, categorises and tracks investor research using complex artificial intelligence software.  This can then be embedded into its clients’ internal systems.

The value of the investment was not disclosed.

Illuminate has been seeking a company that can help address the Mifid II regulatory environment around research, alongside addressing the longer-term challenges of information overload on the buy-side.

After due diligence, it decided FeedStock was the best home for its investment. 

FeedStock categorises and prioritises relevant research in a bespoke way for the fund manager or analyst.

This processed information is contained on a platform with additional filter, search and evaluation tools, producing unprecedented efficiencies.

There are further controls on the system to manage unsolicited research promotions; often referred to as inducements.

Through multiple data sources, FeedStock automatically calculates all research consumed, accounting for meetings and calls, enabling buy-side institutions to produce defensible, transparent metrics when budgeting and paying for research.

The data produced is both quantitative and qualitative ensuring that the research payments ensuring it is accurate and in line with the Mifid II regulations.

FeedStock, which was co-founded by former broker Charlie Henderson and ex-GAM fund manager Lucas Wurfbain at the start of 2016, said it has a number of asset managers on the system and its client base continues to grow.

‘It is testament to our growing business that we have received an investment from Illuminate Financial Management,’ Henderson said.

‘Their in-depth knowledge of the capital markets fintech sector combined with their existing strategic partnerships make them the ideal investor for Feedstock. We look forward to working with their team, to aggressively grow the business.’

Illuminate founder and managing partner Mark Beeston added: ‘The twin challenges of information overload and Mifid II compliance around research have created both an efficiency problem, and a compliance issue for the buy-side

‘The team at Feedstock have experienced these issues first hand from both buy-side and sell-side and we are excited to be part of their journey as they bring state of the art technology to this key industry challenge.’

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Henderson Eurotrust's Stevenson: dealing with European cynicism

Henderson Eurotrust's Stevenson: dealing with European cynicism

Tim Stevenson talks about where he finds his opportunities in the current environment in Europe

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Read More
Wealth Manager on Twitter