Uniform standards for how European securities depositories handle trades that fail to settle on time might sound like good thing — particularly since more than 30 of their markets have moved to a two-day settlement cycle and the phased launch of the new centralized settlement platform, Target2-Securities, is around the corner. But that’s not how the world’s largest custodian […]
Countdown to FATCA Reporting: Will IT Glitches Mar Good Efforts? (Updated)
UPDATE: Following the publication of this article, the IRS announced it will offer another testing window from March 10 at 2AM EDT to March 12 at 5PM EDT. The test will be open to financial institutions and tax administrations which enrolled in the IDES by March 5 at 5PM EDT. With about a month left to comply […]
Liquid Alt Funds: Five Tips to Survive New SEC Scrutiny
A regulatory fine of US$50,000 might seem like a slap on the wrist for a large fund manager, but when an enforcement action from the US Securities and Exchange Commission makes its way into the agency’s press release and headlines from multiple media outlets it becomes a big concern for compliance and operations managers. In a new […]
Broker-Dealers: Good Hygiene Reduces Cybersecurity Attacks
When it comes to mitigating cybersecurity attacks, broker-dealers are quickly taking a chapter out of the textbook on good dental hygiene. Just as regular brushing and flossing can go a long way to preventing tooth decay and gum disease, so can a consistent program of vigilance work against aggressive external and internal hackers, say cybersecurity experts. With the US Securities […]
Broker Dealers Beware: States Get Creative in Unclaimed Account Search
Knock, knock. Who’s there? If a potential censure or fine from the Financial Industry Regulatory Authority or the Securities and Exchange Commission isn’t enough to motivate broker-dealers to ensure their middle and back-office operations are well oiled, perhaps an intensive audit by an unfamiliar firm sent by state regulators will be. The states’ objective: taking over billions of dollars worth […]
PBOR for Fund Managers: Innovation or Brand Grab?
Performance book of record or PBOR for short. A white paper just released by Eagle Investment Systems has fueled talk among investment operations professionals on just what PBOR is and how seriously the concept should be taken. The two critical questions which top the discussion list: just how substantially it differs from the investment book of record (IBOR) and how it […]
Custody Network Management: The Rise of the Super Risk Manager
Second article of our two-part series on third-party risk management. For the first article, click here. Hands-on relationship manager. System Analyst. Recruiter. Negotiator. Risk Manager. Hatchet man. Whoa! Too many job descriptions requiring far different different personalities and skills. They couldn’t possibly all be handled effectively by any single individual. These are just a some of […]
Vendor Risk Management: Financial Firms under the Gun
First of a two-part series on third-party risk. For the second article, click here. Activities can be outsourced, liabilities can’t. Financial firms may understand the legal distinction, but when it comes to managing the risk involved with using external technology providers, they are too often falling asleep at the wheel, warn operations and IT experts. The reason: […]
Private Equity Funds: Coming Clean with Expenses, Fees
With the US Securities and Exchange Commission calling private equity fund managers to the carpet for their fees and expenses, managers had better start preparing to be a lot more forthcoming about their practices to investors. Regulatory exams are just around the corner, warn operations and legal experts. At issue is what expenses should be absorbed by private […]
Passing on the Business: Data Transit for Cost-Basis Reporting
A US investor decides to switch its account from one broker-dealer or bank to another. The transition is supposed to be a no-brainer which happens every day on Wall Street. However, when it comes to cost-basis reporting, a simple operational process could easily turn into an administrative and financial nightmare, warn tax operations experts. The ramifications can […]