Dublin-based Silverfinch and Luxembourg-based Fundsquare, two of the leading initiatives designed to help insurers and asset managers meet new regulatory obligations, have announced an alliance to promote their Solvency II Look-Through and Data Utility across Europe.

The deal will see Silverfinch and Fundsquare launch a joint push to asset managers and their insurer clients right across the European Union ahead of the Solvency II implementation deadline of 1 January 2016.

Under Solvency II, insurers will be required to deal with a mass of regulatory reporting requirements. Specifically, Silverfinch will allow insurers to gather highly detailed regulatory data on their large portfolios of assets which are invested on their behalf by a wide range of asset managers. The joint initiative creates connectivity between asset managers and insurers in a secure and permissioned manner. It allows insurers to comply with Solvency II regulation, and for asset managers the solution enables them to manage and carry out requested look-through in a timely and controlled fashion.

Commenting on the alliance John Dowdall, managing director, Silverfinch said: “Silverfinch has made huge strides in the market in addressing the look-through challenge that both insurers and asset managers face. The simple reality is that Solvency II is about to create a new continent of data. Insurers are now in the process of addressing the issue and demands of look through and asset managers will begin to see these requirements feed through in the coming months.”

“The current timeframes allow both just over a year to implement the look-through requirements, and to partner with an organisation like Fundsquare, whose expertise in fund market infrastructure is known across Europe, allowing Silverfinch access to the broader European market.”

The alliance sees fund data companies from Europe’s two largest fund centres, Ireland and Luxembourg, partner to address a regulatory issue that impacts European insurers and asset managers globally.

MoneyMate Group CEO, Paul Fawsitt, commented: “Silverfinch, as part of the MoneyMate Group, are delighted to welcome Fundsquare to this major industry initiative. Regulators’ appetite for data is driving straight to the core of funds, and utilities such as Silverfinch are critical to reposition the funds industry for sustainable response.”

Fundsquare CEO, Dominique Valschaerts stated: “Funds and asset managers in Europe need to evolve their operating models to make them more efficient. Working with Silverfinch, which like us operates as a market utility, allows both our companies to provide a coherent response to the challenges of Solvency II by setting a pan-European standard data model for managers. This model has the dual advantages of allowing asset managers to retain control and of protecting intellectual property.”

Solvency II is a review of the capital adequacy regime of the European insurance industry. Its aim is to ensure that insurance businesses have sufficient capital to pay claims by establishing a European-wide set of capital requirements.