What does it take to be a fiduciary to a retirement plan for the first time? Broker-dealers and other investment advisors that give clients of retirement plans recommendations on what assets to buy and sell will be struggling to answer this question as they create policies and procedures to fulfill the new fiduciary standard of […]
Syndicated Loans Market: An Evolution is Coming
Nineteen days and counting. That’s the average time it takes to settle a US syndicated loan. It’s a far cry from the two or three days for other asset classes, but fund managers, broker-dealers, agent banks and even regulators are waking up to the fact the gap must be closed to reduce risks and costs. […]
US Swing Pricing: Getting the Process Right
The US mutual fund managers may soon be following in the footsteps of their European peers in adopting swing pricing, but how ready are they to overcome the operational and compliance challenges? If the tone of discussions at a recent standing-room-only event hosted in New York City by the Association of the Luxembourg Fund Industry (ALFI) is any indication, the answer is […]
US High Court Asked to Address Rights of Unclaimed Account Holders (Updated)
(Editor’s Note: On February 29, 2016 the Supreme Court decided not to hear the case involving California’s unclaimed property statutes on the grounds the “convoluted history” of the lawsuit made it unsuitable for appeal to the US high court. However, Justice Samuel Alito warned that state unclaimed property laws could face a serious constitutional challenge […]
US T+2 Settlement: The Long Journey Officially Begins
What a difference a day makes. Until September 16, the US financial industry had only been talking about a two-day settlement cycle. Only a preliminary roadmap of the stepping stones to T+2 had been completed, indicating that at least 30 operational workflows will be affected, requiring rule, behavioral and technology changes. On that day Securities and Exchange Commission […]
Recent SEC Compliance Fines: What to Watch Out For
Four recent enforcement actions by the US Securities and Exchange Commission each highlight a different area of concern by the regulatory agency and each sends a loud and clear message in hefty fines and professional punishment. We think they offer valuable lessons to readers of FinOps Report on how to steer clear of legal landmines. Conflict […]
Transfer Agents: Preventing Fraud a Delicate Balancing Act
The work of stock transfer agents may require a lot of detail management, as well as complex interactions with issuers, shareholders and various intermediaries, but the field isn’t likely to be associated with investor fraud. That is, until now. Two commissioners at the US Securities and Exchange Commission are urging the agency to take a harder look […]
Unbundling Commissions from Research: Big Pain, but Any Gain?
Customers are supposed to understand and agree on exactly what they are paying for. Right. It sounds like a truism, but it isn’t always true. Deals may contain perks or incentives that are never explicitly detailed in the agreement. If they suddenly have to be spelled out and agreed upon, item by item with the […]
News to Use: New AML Technology and Bitcoins
AML Tech Upgrade: To avoid doing business with the wrong customers and counterparties, financial firms can now rely on a new generation of software applications that go beyond traditional rules-based screening to far more sophisticated data analysis, says a new research report from Celent. The costs of not complying with anti-money laundering rules can be […]
News to Use: Citi, DTCC and CUSIP Global Services
Limboland in Argentina?: Fund managers and global custodians relying on Citibank as their local agent bank in Argentina remain in limbo as to whether or even how Citi will be able to exit the subcustody business in that country. As of press time, FinOps Report was unable to verify whether Citi would still be shutting […]