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 […]
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 […]
Corporate Actions: Solving the Operational Disconnect
A capital charge, stock dividend, reverse stock split, tender offer or voluntary distribution. Those are just a few of the dozens of types of corporate action events — many of them them voluntary corporate actions in which a decision must be made — that management firms have to handle on a daily basis. Who has to deal with […]
Valuation Disputes: Process for Everyday Crisis
Internal analysis at a fund management shop sets the price of a non-exchange traded security at $US80 — the most recent trade price that could be found. However, the third party evaluations provider used by the fund manager says it’s worth no more than US$60 based on projected future cash flows and taking into account the illiquid market. What’s the […]
Solvency II Creates Big Data Challenge for Fund Managers
If regulations such as AIFMD, EMIR and the Dodd-Frank Wall Street Reform Act weren’t enough to prompt fund managers to shore up any deficiencies in their data management capabilities, Solvency II could finally do the trick — and quickly. Called the Basel III of insurance firms, Solvency II has also been called a “data nightmare” by […]
Money Market Fund Managers: SEC Ships New Operational Challenges
After years of uncertainty about how regulatory reform would play out, money market fund managers may be relieved to know finally how they will be regulated by new rules adopted by the US Securities and Exchange Commission. But the news won’t be particularly comforting to the operations, compliance and technology staff of the funds, which represent a third of […]
Alt Mutual Funds: Seeking Alpha under SEC Scrutiny
If it looks like a duck, but honks like a goose, is it a duck or is it a goose? As far as the US Securities and Exchange Commission is concerned, the duck can honk all it wants, it still has to live by duck rules. The regulatory agency is making certain that mutual funds that act like […]
Monitoring Proxy Advisory Firms: A New Compliance Challenge?
Proxy advisory firms are supposed to help fund managers decide how to vote their shares in annual or other corporate meetings and even cast votes for them. But that doesn’t mean fund managers should just let them do all the work and forget about it. Apparently that’s what the US Securities and Exchange Commission thinks […]
US Cost-Basis Reporting: Pay Up Now or Pay A Lot More Later
US tax experts are sounding a loud alarm bell for financial-firm clients this tax season. They had better be prepared to comply with the Internal Revenue Service’s new cost-basis reporting rules for debt instruments, or be prepared to face the music. They won’t like the tune. The IRS will fine not only investors, but also […]
Validating NAVs: An Ounce of Prevention Saves a Lot of Grief
Net asset value, or NAV for short: it’s a basic calculation which hundreds of mutual and other investment fund managers have to make each day to allow investors to know just how much they will pay to buy and sell shares or units. While the timetable for when the figure must be struck might differ, […]