The ID Register an online platform which makes the Know Your Client (KYC) process quicker, easier and more cost effective celebrated its first birthday on 22 July 2017.
Since its launch the platform has grown rapidly with more than 17,500 registered investors and 140 GPs including StepStone, Gilde, Adam Street Partners and TDR Capital. It is a revolution for the investor onboarding process in the private funds market and it is proving very popular in the US market.
Backed by leading fund administrator, Ipes, The ID Register was developed in response to the changing regulatory requirements for KYC. The UK Financial Conduct Authority (FCA) has stated, “In order to enable effective competition and promote innovation, it is important that technologies that help firms better manage regulatory requirements and reduce compliance costs are supported.”
The Guernsey and Jersey Financial Services Commissions have updated their guidance to encourage firms to improve the cost effectiveness of Client Due Diligence (CDD) through the adoption of technology. The GFSC “hopes that these changes [to the Handbook] will give firms the confidence to use new technologies.”
Tim Andrews, Director, Ipes says “Financial organisations currently face a number of common problems around customer due diligence. It is currently a manual, paper based process, there is often poor visibility of what evidence is held and where there are gaps. Sharing sensitive documents by email is not secure and requesting the same information time and time again from the same people creates hassle and annoyance.”
“The ID Register solves these problems, as well as ensuring compliance with differing regulatory requirements in different jurisdictions. Digital KYC is the future.”
Each KYC profile on The ID Register can also be used to ensure compliance with the US Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) legislation. This eliminates the need for further FATCA self-certifications and drives efficient reporting straight from The ID Register data. KPMG in the Channel Islands has been working with The ID Register to ensure that each profile remains compliant with evolving legislation. Tony Mancini, Tax Partner, KPMG says, “The ID Register is able to combine data with multi-jurisdictional reporting functionality for FATCA and CRS, delivering an efficient, cost effective package that will report the right information, at the right time, to the right jurisdictions.”
StepStone Partner Jason Ment says, “The ID Register is nothing short of a revolution for the investor on boarding process in the private funds market. The investor on boarding process has become more complicated and protracted in response to regulatory change. This frustrates investors and sponsors alike.”
“The ID Register is a straightforward solution that seems obvious the moment you hear it – the investor completes a profile covering everything one time, and one time only. The profile is kept up to date. The investor shares the profile with each investee fund. No repetition. No wasted time.”