Complying with “best execution” requirements is nothing new for fund managers, but some could easily end up failing to meet their fiduciary obligations this year due to circumstances beyond their control — the unprecedented market volatility and remote working generated by the COVID-19 pandemic. About a dozen operations managers at US fund management firms who […]
Coronavirus :The Corporate Actions Side Effect
Corporate actions analysts and operations managers working remotely during the coronavirus pandemic could unintentionally end up leaving money on the table as they scramble to deal with companies either postponing some events or changing the terms of others. That’s what Jonny Ruck, chief executive officer at London- headquartered corporate actions analytics technology firm Scorpeo is […]
Coronavirus: Survival Tips for Middle Office Fund Ops
The coronavirus pandemic is frazzling even the best trained middle-office operations managers of US fund management shops who are working in the trenches of a battlezone. The war isn’t about setting up remote access to IT systems for employees having to work from home or deciding who should do which task and when. Following a […]
BNY Mellon Gives Fund Managers New NAV Agent
Fund managers no longer have to rely on their fund administrator’s backup plan or their own when striking or validating a net asset value. BNY Mellon, the world’s largest custodian bank, says it can save the day by doing all the operational work using Milestone Group’s pControl platform which also allows for accurate backup NAVs […]
SEC’s Proxy Voting Guidance: What About Corporate Actions?
The US Securities and Exchange Commission’s recent guidance on proxy voting may have unintentionally raised the issue of whether fund managers are meeting their fiduciary obligations when they vote in one-off voluntary corporate action events. Compliance managers at several US fund management firms tell FinOps Report that following the publication of the SEC’s publication of […]
State Street’s US$88M Fine Highlights Deceptive “Pass-Along” Custody Fees
How can a global custodian bank convince clients for almost two decades that a twenty-five cent cost to transmit a message through the SWIFT network transmission is really worth a $5 “pass-along” fee? Easily, when fund managers aren’t paying attention and no one at the custodian bank is minding the shop. That’s no longer the […]
IRS: Get Your Data Right on FATCA and QI Certifications (Or Else)
The US Internal Revenue Service is turning tax operations and compliance departments into data and paperwork geeks when it comes to meeting their requirements for FATCA and QI. Did your tax operations department withhold the correct amount of tax for the right account and file the form correctly by deadline? That’s what an IRS auditor […]
Hedge Funds: Proactive Operational Risk, Finally
Failed trade settlements, bad valuations, bad reconciliations, shoddy vendor management and simple forgetfulness. These glitches aren’t new for hedge fund managers. What is new is that they are turning to management and technology consultants for help. As regulators, such as the US Securities and Exchange Commission, look under the hood during exams and investors become […]
US Withholding Agents Face the FATCA Music
The US Internal Revenue Service is spreading its love for the Foreign Tax Compliance Act (FATCA) to US shores. US tax operations and corporate tax directors at US banks and broker-dealers serving as US withholding agents must now deal with the IRS’ request for more information on their compliance with FATCA. If they haven’t done […]
Cryptofunds: The Tough Due Diligence Test
When it comes to investing in cryptofunds, institutional investors will need to be extra cautious deciphering the trading and operational risks involved. Knowing what to ask cryptofund managers won’t be as hard for institutional investors as understanding the answers they receive. “Even the savviest institutional investors might not be knowledgeable in the intricacies of the […]