Mifid II  

Defaqto updates software to offer Mifid II cost analysis

Defaqto updates software to offer Mifid II cost analysis

Defaqto has added a Mifid II cost analysis functionality into its end-to-end financial planning software.

The latest release of the Engage software includes a complete breakdown of Mifid II costs within its portfolio builder.

According to Defqto, Mifid II target market and cost data has been available within investment workflows since 2018, allowing users to filter and compare funds based on costs.

The update now allows users to view one-off and ongoing costs, such as entry, exit and annual management charges, transaction fees incurred when buying and selling underlying investments, as well as any incidental costs, including performance fees.

Paul Dagley-Morris, chief technology officer at Defaqto, said: “Compliance and regulatory change will continue to be a challenge in financial advice, as such we review and update our software solutions regularly. We want to ensure that we make it as easy and efficient as possible for our users to ensure they’re always compliant. 

“This latest update arms advisers with access to even more information to further assure compliance. Whether an adviser is recommending a new portfolio or reviewing a client’s existing investment, Defaqto Engage users can now see a full breakdown of Mifid II costs.”

Darius McDermott, managing director at Chelsea Financial Services, said: “Anything that breaks down costs and allows proper comparison is helpful, with the caveat that some fund manager styles are such that turnover is greater so costs will be higher – it doesn’t necessarily make them bad – so performance after fees is still the most important factor.”

Earlier this year adviser support services provider SimplyBiz bought Defaqto for £74m.