If you think your anti-money laundering transaction monitoring software isn’t working correctly, what should you do? a) blame your vendor and replace the software b) blame your analysts and tell them to work harder c) review your data feeds and inputs d) throw your hands up and think you can’t do anything e) doubt your […]
Commission Unbundling: What Price Is that Research in the Window?
It’s a given that fund management firms should pay for research — aka the ideas and analysis — that helps them make decisions on whether or not to buy or sell a particular stock or bond and when. Yet the European Commission now wants to put their spending on research under the regulatory microscope. A new […]
When Buying Cybersecurity Insurance: Caveat Emptor
The theft of personal details of millions of individuals in a U.S. government database might sound shocking, but it really isn’t given the latest stream of well-publicized hacking events in the retail, financial and insurance industries. Neiman Marcus, eBay, Home Depot, JP Morgan Chase, Sony and Anthem are among the high-profile casualties. Given that a cyber […]
New Mutual Fund Reporting Rules: New Operational Angst
If US mutual funds and other registered investment funds feel relief they have been spared from the cumbersome rules for systemically important financial institutions, they may not for much longer. Hefty new disclosure requirements are on the horizon, if the US Securities and Exchange Commission has its way. Although the SEC is seeking industry input before […]
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 […]
KYC Utilities: How Many is Too Many?
When is four too high a number? When it is the number of virtually interchangeable third-party services specializing in helping financial firms meet their know-your customer and other regulatory requirements, acknowledge fund managers and even the providers themselves. Of course, just how many should be left standing and who that should be is a difficult question […]
Fund Managers: Fixing EMIR Reporting Glitches
Now that more than a year has passed since they’ve had to deal with new reporting requirements under the European Market Infrastructure Regulation (EMIR), fund managers are belatedly waking up to the fact they could soon face whopping regulatory fines for not submitting correct data on their derivative transactions to accredited trade repositories. Regulatory operations […]
Hedge Funds: Beating the Lost-Administrator Blues
You’re the chief executive or chief operating officer of a small or mid-sized hedge fund manager and have just received a call, visit, or letter from your brand-name fund administrator. The message: Sorry, we love you, but can no longer afford to take care of you, because you are too small to be profitable for us. […]
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 […]