KYD is a complete solution for Australian Product Issuers and Distributors which takes the pain out of due diligence processes and reduces costs for all. The technology has been deployed successfully in 75 countries and covers over 1000 distributors globally.
Watch this short video to see how KYD works.
A huge amount of effort is saved on both sides with Distributors only needing to complete one, relevant questionnaire (and refresh responses annually), and Product Issuers being able to review responses centrally.
Overseas experience shows that an 80% saving in person days can be achieved when compared to performing due diligence manually.
Record keeping and audit trail
Full records of responses are retained, as is the Product Issuers assessment. Ability to upload additional documentation.
Align to your internal roles
Sections of the questionnaire can be allocated to internal SMEs for completion or review.
Third party review
Product Issuers can opt in to our additional service where a compliance consultancy can review distributor responses on your behalf.
Focus on what matters
System generated (customisable) RAG rating so Product Issuers can direct your attention to the areas that potentially pose higher risk.
Tried and tested
The underlying technology is being used by fund managers and distributors in Europe. The solution is ready for use today.
KYD powered by 3D technology is proud to be certiﬁed as meeting the requirements of ISO 9001 and ISO 27001.
Processes designed to meet distributor selection and monitoring obligations can be manual, time consuming and resource intensive, leaving products issuers with less time to focus on understanding and assessing distributor practices. Under the Design and Distribution Obligations (DDO) regime, product issuers have heightened obligations in relation to the selection and monitoring of their distributors. The European experience under the MiFID II regime tells us that these obligations can lead to a huge administrative burden on product issuers and distributors if manual processes are adopted.
What goes wrong:
- Distributors are overwhelmed by the large number of requests (questionnaires, data requests, attestation requests) from product issuers in differing formats at different times. As a result, responses provided back to product issuers can be incomplete or delayed.
- Product issuers are left chasing responses rather than focusing on the substance to identify potential red flags.
- Significant increase in the cost of compliance as product issuers and distributors deploy resourcing to respond to the heightened obligations
- Product issuers can become focussed on data gathering rather than gleaning meaningful insights and analysis.
The KYD Solution
KYD, powered by 3D, has been developed by industry practitioners who understand business risk and Australian regulatory settings. The technology has been successfully deployed in the United Kingdom and Europe to meet similar obligations.
How does it work? Distributors complete our thorough, industry-specific questionnaire once. The distributor then controls which product issuers can see the responses about their internal controls and governance practices, allowing the product issuer to make an assessment of the distributor’s capacity to meet distribution conditions and distribute in line with target market determinations.
The KYD solution takes the pain out of due diligence processes and saves both product issuers and distributors time and cost. Analysis performed by users of the technology in Europe showed that up to 80% saving in person days can be achieved when compared to performing the activity manually.
Watch the video to learn more.
|The Distributor experience
|The Product Issuer experience
The KYD solution can also be used to meet obligations under the AML/CTF Act where reliance is placed on customer identification procedures performed by a third party.