(Editor’s Update on December 5, 2018: US fund managers are getting serious about striking back-up NAVs on their own. Milestone Group tells FinOps Report that it has nabbed two top-tier US headuartered fund managers to use its pControl Oversight platform to monitor their fund administrators and to strike back-up NAVs in-house, instead of relying on […]
FINRA to Broker-Dealers: Are You Liquid Enough?
Risk and financial reporting managers at clearing firms and large broker-dealers could soon have to recode their back office systems and establish new procedures. Why? To quickly inform the Financial Industry Regulatory Authority (FINRA) whether they have a liquidity problem and report a lot more information about their financing deals. The self-regulatory agency for broker-dealers […]
Global Network Management: Are My Assets Safe?
Global network managers of custodian banks are redefining the word relationship when it comes to monitoring local agent banks that safekeep assets of underlying clients in multiple countries. It is no longer enough to make a sporadic visit or have a phone call. Global network managers have become detectives sifting through mounts of data to […]
Alt Fund Managers: What Needs to Be Fixed Before the SEC Exam
Hedge fund and private equity fund managers top the list of firms having the most angst, when it comes to worrying about passing an exam by the US Securities and Exchange Commission. They also are likely to have the the most work preparing for an exam. A recent survey of C-level executives conducted by compliance […]
SEC Reporting Rules: Fund Managers’ Recon Challenge
The US Securities and Exchange Commission uses the word modernization when speaking of its new reporting rules for registered investment fund advisers, but that’s not how asset managers see things. They dread the approaching tsunami, according to panelists and attendees at a recent TSAM North America fund management event held in New York. Fund managers […]
Dole Class Action Ruling: Short-Selling Clawback Next?
US brokerage and bank operations and compliance managers will soon have to face an onerous back-office and legal challenge — figuring out how to make short sellers pay back $2.74 plus interest for each share of Dole Foods shorted more than three years ago. That money would be used to compensate beneficial investors who are considered the […]
Judge’s Ruling Questions Attorney-Client Privilege for Mutual Fund Trustees
Independent mutual fund trustees will likely think twice before they say anything incriminating to their external legal counsel about how they administer mutual funds. The rights of mutual fund investors to fair advisory fees trump the rights of independent mutual fund trustees to attorney-client confidentiality, says a Washington State federal district court judge in a […]
No Shortcuts Reimbursing NAV Errors Says SEC
The US Securities and Exchange Commission’s recent $3.9 million settlement with social investment manager Calvert Investment Management highlights the operational challenges — and potential legal liabilities– faced by mutual fund companies that must equally compensate all investors for any errors in net asset value calculations . It isn’t enough to make a best effort. Fund […]
Swing Pricing for US Funds: Has the SEC Gone Far Enough?
Like it or not, fund managers will have to make peace with the Securities and Exchange Commission’s new investment company reporting modernization program and liquidity management guidelines. They’re going to have to accept doing more to curb their liquidity risk and disclose more about their investment composition. Oddly, it’s a voluntary aspect of the new SEC […]
FATCA, GATCA Tax Patience of Relationship Managers
Relationship managers on the front-lines of interacting with investors or customers say that complying with the Foreign Account Tax Compliance Act (FATCA) and its global version Common Reporting Standards (CRS) is giving them plenty of angst. The requirement to identify the investor or customer for tax purposes may conflict with the equally important need to […]