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 […]
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 […]