Markit and its JV win PIMCO regulatory and compliance solution contract

Markit Ltd (Nasdaq:MRKT) and its joint venture with Genpact Limited (NYSE:G) have announced that investment management giant PIMCO has selected them to complement PIMCO’s due diligence and onboarding requirements.

PIMCO, the $1.5 trillion AuM firm, is one of the largest asset managers to expand its use of and Markit’s regulatory and compliance ecosystem. and Markit’s regulatory and compliance ecosystem provides buyside investment firms, sellside brokerage firms and corporates with an integrated solution for onboarding, KYC, AML, tax and legal and credit agreements. It serves as a centralised repository to exchange counterparty documentation and validated entity data.

PIMCO benefits from the ability to reuse this quality data and documentation across all of its onboarding functions and communicate with its counterparties. The firm also has full transparency across workflows and information in a single, centralised location.

According to Tracey Jordal, executive vice president and senior counsel for Trading and Markets at PIMCO:

PIMCO looks forward to working closely with Markit in using Counterparty Manager, Tax Utility, and the entire regulatory and compliance ecosystem. The seamless interoperability between these platforms to support client onboarding, master agreement negotiation and tax validation as a unified group of steps is particularly beneficial.

“There are compelling business drivers for moving to an industry utility to support standardisation for onboarding, KYC, tax and due diligence,” said Virginie O’Shea, research director at Aite Group. “Large global buyside firms like PIMCO are realising the benefits of having a global view of their customers as they share documentation and data across multiple booking jurisdictions and bank counterparties. Centralising these efforts will enable buyside firms to manage beneficial ownership and build legal hierarchy across their accounts to reduce costs and manual efforts.”

“This is a fantastic win for and Markit’s Solutions division,” said Darren Thomas, managing director, head of Counterparty Manager at Markit. “We are committed to delivering the best products and services which includes our integrated ecosystem for tax, KYC, AML and legal and credit agreements. PIMCO is forward thinking in its adoption of new technology to efficiently address regulatory change. Our strong partnership has enabled us to evolve our solutions with an extensive network of connected brokers, custodians, and fund administrators.”

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