BNS CI Performer TM Deposit Notes (Yield) Series 2 FundSERV: SSP 202.
FundSERV Inc.
Transcript of FundSERV Inc.
FundSERV UpdateJune 15, 2012
David Purewal CA, CPA, CRISC, CISADirector
Finance, Risk & Administration
“Coming together is a beginning.
Keeping together is progress.
Working together is success.” Henry Ford
Agenda
1. Business Update Financials Data centre complete
2. Standards (XML Conversion)3. Marketing Plan
FUNDcom GICSERV FundFacts Client Name (EPA) Offshore Funds DTCC
Business Update
Fiscal 2011: Revenue up 2% YoY
Record high transaction volumes (up 4%)
Expenses down 3% YoY Despite investments in GICSERV & DTCC Head count up at 86 + 5
Rebate up 8% YoY to a record high Issued last week
Dealers received special $400k tax rebate Going forward, a portion of GST/HST will be refunded with
the annual rebate Extra $1MM included in last week’s rebate
Regulated as a clearing agency (OSC) Apr ‘12 No change in costs
“You can't build a reputation on what you are going to do!”
Data Centre Rebuild
Rebuild completed within the current location
10‐year lease extension in Exchange Tower
Proved our ability to run network & apps from 2nd site for extended period of time
FundSERV BCP test coincides with IIROC BCP test
Will participate in IIROC BCP test (Sep ‘12)
FundSERV Standards
XML File Benefit: FundSERV laying the groundwork for
the future of the fund industry Implemented 1st phase over the past
weekend (month end & price files) Commission and service fee files – June 2013 Transaction reconciliation and settlement
files – June 2014 Working with FAS Mutual Fund Cmte on FD
(fund profile) update over next 2 years
Off‐cycle changes to accommodate FATCA and NI 31‐103 as required
“A business that makes nothing but money is a poor business.”
Marketing Plan
Objectives:
1. Educate customers “FundSERV 101”: one‐on‐one training Raise brand awareness amongst advisors Increase dealer participation on N$M and FUNDcom Market GICSERV and DTCC service offerings Become the recognized fund facts repository for the industry Achieve critical mass for Client Name Automation
2. Solicit ideas from customers Better understand distributor automation challenges IIROC trading automated, but NFU + FUNDcom need work
FUNDcom
What is FUNDcom? Secure access to client holdings & related
information Single sign‐on Web‐based One inquiry ‐multiple companies Standardized screens & responses
Who uses FUNDcom? Advisors Assistants Head office administrators Branch managers Fund company employees
How much are we using FUNDcom? What are my
competitors doing?
FUNDcom
Current Inquiry Options: Account holdings/transaction history Hypothetical redemptions PAC/SWP/AWD Distributions Demographics 10% Free DSC GMWB
‐
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Dealer A
Dealer B
Dealer C
Dealer D
Dealer E
Dealer F
GICSERV Update
GICSERV -Background
Genesis: Dealers approached FundSERV to automate the guaranteed investment process for the brokered market
Sponsors: Five large issuers and related dealers Governance: GICSERV Standards Steering
Committee (GSSC) and Standards Working Group Revenue model: Cost recovery
Why FundSERV
Industry owned utility Cost certainty through cost recovery business model Hub and spoke network with existing connections to
most issuers, distributors and technology vendors Proven BCP capability and IIROC industry testing
participant Industry developed, non‐negotiable standards
v1 Q3 2012: Code Registry/Product Master Dealer Originated Orders Issuer Response/Confirmation Account Holding Reconciliation Issuer Scheduled Payments Multilateral Net Settlement Reporting/Messaging Web Order Entry Screens
Functional Delivery
All files XML document type definitions Embedded quality assurance through parse, schema
and business edit validations Nominee and client name platforms including
insurance products Order plus settlement models – not tied to underlying
market settlement convention and order cutoff Issuer assigns issue and settlement date to
confirmation
Key Features
Dealer to Dealer Transfers via CDS ATON Met with FAS Transfers Subcommittee
Interactive Order Messaging Re registrations Non‐Financial Updates CDIC Nominee Trust Reporting
Future Enhancements
Launched GICSERV.com April ’11 Published Standards v1 Sept ’11 QA Testing Present Industry UAT Testing v1 Q3/12
Milestones
What is my vendor doing to prepare for GICSERV ?
Will we be ready?GICSERV is coming!!
FundFacts
FundFacts Repository
Centralized, industry‐wide solution with no additional cost
Web‐based, one stop shop for Fund Facts documents
Mutual funds and segregated funds
Launched June 27, 2011
Currently 31 fund companies (50% of FundFacts universe) have filed with ongoing awareness campaign to get manufacturers to utilize repository
Advisors can register and email fund facts to clients directly from site.
Interface to Fund Co websites
Can accommodate POS audit trail if needed
V.S.
Client Name Automation -EPA
“Efficiency is doing BETTER what is already being done”
Client Name Automation -EPA
Reduce amount of paper exchanged between distributors and manufacturers
Streamline and standardize processing rules for distributers
‘One‐to‐many’ industry wide agreement (EPA) Improved end‐to‐end processing time Reduce transaction processing costs for the industry
Why?
Fund Companies:AGF Management, Castlerock Investments CI Funds, CIBC Asset Management, CIBC Securities, CI Investments, Dynamic Mutual Funds, Fidelity Investments Canada, Franklin Templeton Investments, Harmony, Invesco CanadaMackenzie Financial, RBC Funds, SunLife Global Investments
Dealers:Assante, Dundee, Portfolio Strategies, Qtrade
Client Name Automation -EPA
Offshore Funds
Customized service offering to meet the needs of select group of FundSERV customers
Allows offshore fund manufacturers (10) access to Canadian broker/dealer distribution to offshore clients
Allows Canadian broker/dealer access to offshore fund manufacturers
Canadian broker/dealer responsible for compliance (e.g. Client is domiciled offshore and is eligible for funds)
Via NSCC Mutual Fund Services
FundSERV is a member of the DTCC as a Third Party Provider (TPP)
Multi‐currency: USD, Euros and pounds
“People can have the Model T in any color ‐so long as it's black.”
Summary
FundSERV’s mission is to reduce your
time, cost & risk
1. GICSERV: operational time, cost & risk
2. FUNDcom & NFU: labour time & cost
3. FundFacts w/ integrated confirm: distribution cost