21 July 2020

Plia Publishes a New European Questionnaire for Best Execution and MiFID II Compliance


After almost three years, a new European focused questionnaire has been created to modernize the existing due diligence framework so investment managers can ensure best execution standards are being realised.  The new questionnaire expands upon the 2017 version with more emphasis on risk controls, surveillance, systematic internalisers, and venue selection.  While the questionnaire is focused on electronic trading protocols and capabilities for equities, the 124 questions cover a lot of ground as it relates to broader issues, such as analytics, team structure, reporting, and client confidentiality.


Bill Stephenson, CEO of Urvin.Compliance, said, “After becoming a preferred partner of the Plato Partnership earlier this year, we formed the European Advisory Board (EAB), which includes 10 major buyside (representing £10 trillion in AUM) and several of the largest global sellside firms.  The EAB has been instrumental in creating the latest version of this questionnaire which will become the new standard for European investors.”


Users of the PLIA by PLATO platform in Europe can now access this questionnaire, including the ability to customize the template by deleting or adding existing questions from an extensive global database.  The benefits for the sellside are clear; once a question from the new questionnaire is answered for one client, it will automatically populate for all clients asking the same question.  The sellside user would just need to verify the automated response before submitting it to each client. 


With higher standards related to best execution under the MiFID II regime, the meaning of ‘taking all sufficient steps’ to achieve the best results for clients means fully understanding how counterparties operate and ensuring that it aligns with an asset manager’s execution objectives.  Part of that validation process can be achieved by leveraging Plia’s capabilities whereby the counterparty responses can be centrally managed, audited, compared, and better understood. This industry-led standardisation process creates a common framework where best practices can become more obvious and transparent.


“Having a standard questionnaire for European asset managers will not only streamline their process for counterparty management, but the collaborative energy used to organise this questionnaire will ensure many of the right questions and conversations are occurring throughout the industry,” noted Stephenson.

In the future, Plia will be publishing an updated version on a yearly basis, in addition to regional versions that align with local regulatory regimes and market structure nuances.  Additional multi-asset versions will also be compiled to meet other standards, such as the recent FICC Markets Standards Board draft as it relates to algorithmic trading in the fixed income, currency, and commodity markets.

Access to the new questionnaire can be requested here.  

About Urvin.Compliance

Urvin.Compliance is a financial technology firm that was founded with the explicit goal of transforming the counterparty management process for the institutional trading community. With the ever-expanding information gap between asset managers and their counterparties, Urvin.Compliance has developed solutions that will centrally organise relevant information such that risks can be mitigated and fiduciary responsibilities can be managed.

For more information, please visit www.plia.co.uk or www.plia.com