We challenged the status quo.
Questioned the operating model.
We put data at the heart of the story.
Turned the model upside down.
And invented the data-driven fund prospectus.
Going from data to a disclosure document.
Challenging the status quo
The fund prospectus has for too long been governed by text files and word processing documents. This has left a myriad of pages some of which are filled with text that informationally seen aren't relevant.
The review process is cumbersome. Not only is it very time-consuming but often the information is obscured due to complex language and numerous repetitions across different contexts.
Although advances in AI have been able to speed up the process somewhat, any given program needs larges volumes of documents for the initial learning cycle further slowing down the review process.
Although once such a solution works, it brings immediate benefits for the regulator but less so for the asset managers who will only benefit from potentially shorter review timelines
Turning the operating model upside down
Yet to-date, in a data-driven digitally transforming world no one has endeavored to conquer the fund prospectus and take the data back—back to the beginning. That is what we did. We turned the standard operating model upside down and let ourselves be guided by the power of data. Rather than using the disclosure documents as the basis for decision-making we want to use the data in the prospectus as the basis for decision-making.
The data should be what creates the prospectus, yet also so much more. Not only do we want to revolutionize the way prospectuses are created—we want to challenge the way they are used. Why should a word processing document be used as the technological basis for disclosure, when in reality the data should be the subject of disclosure.
Let’s start small by submitting the raw product data as just that—data. If further context is needed the document (pulled from that data) can be submitted in parallel. Let’s move the Luxembourg financial industry into another league by truly embracing digital data transformation—together.
The regulator will be able to review data on-screen and spot exceptions faster. That means viewing the a display of data in a systematical way thus being able to assess consistency effortlessly. This will not only automatically identify delta between current and previous submission but also allow for the
use and re-use data for oversight, statistics, analysis.
The asset manager will be able to implement data management practices that makes the organization ready to embrace growth opportunities. By creating consistency from the start, this will allow for a systematic use of data for governance matters, statistics, analysis and ultimately ensure a seamless sharing of data with stakeholders down the value chain – distributors, custodians, and service companies.
The industry as a whole will be able to step into the future and as such lead the international fund industry into a pioneering role by proactively creating a data-centric future—embracing the opportunities digital data transformation can bring to an entire industry and beyond.