As regulatory pressures mount on wealth managers, one of the major firms operating in the fintech space issues an update on one of its flagship offerings.

International fintech firm SimCorp, which works with clients such as wealth management houses, has unveiled the 6.2 release of its front- to back-office investment management offering, SimCorp Dimension. The solution is designed to help managers wrestling with the European Union’s upcoming MiFID II regulatory juggernaut.

The offering is designed to handle defaulted securities and support deferral of profits/losses on trades between internal entities (as can happen when two portfolios that belong to the same firm make an internal trade). The Defaulted Fixed Income Securities Module makes it possible to take the registered default date on a fixed income security and create actual default transactions, which will reverse any outstanding coupon payments, redemption payments, interest accrual and amortization. Such functions are designed to automate accounting processes and cut risk.

SimCorp said its service developments help managers cope with having to comply with MiFID II, a raft of rules coming into law early next year. (The regulations are designed to reduce risks of mis-selling investments, improve transparency and clarity over costs.)

The next version of SimCorp Dimension will be released in February 2018, SimCorp added.