Blog

Warning Signs You May Need a New Fund Administration Provider

Jul 10, 2018 10:06:36 AM  |  '40 Act , Regulatory

Sticking with the Status Quo May Cost More Than Converting

As an investment manager, is your mutual fund administrator a transaction processor fulfilling basic functions? Or is your service provider engaged and strategic, providing high quality administrative services coupled with insightful business acumen? The difference could mean putting your organization in the best position for long-term success or putting it at significant risk.

While investment managers don’t always recognize that their service provider has become deficient, or fear converting to a new provider, staying with the status quo can be more risky. To help investment managers get the most out of their fund administrator, below are a few warning signs that indicate your current provider is not cutting it, along with some tips to ensure a smooth conversion if a switch is the best course of action.  

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Examining the Pricing Vendor Due Diligence Process in the Mutual Fund Space

Jun 12, 2018 10:00:00 AM  |  '40 Act , Regulatory

Rule 38a-1, under the Investment Company Act of 1940, commonly called the “Compliance Rule,” identifies the investment adviser, principal underwriter, administrator and transfer agent as the “significant” service providers to a mutual fund.  The Rule further states that a due diligence review of the policies and procedures should be completed for these service providers at least annually. Fund compliance officers and fund boards are now quite accustomed to this process.

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Part 3 - Launching a Mutual Fund: Compliance & Regulatory Insights

May 29, 2018 10:00:00 AM  |  '40 Act , Regulatory

This three-part series covers not only what it takes to launch a fund, but what it takes to launch a potentially successful fund. If you missed the first two installments, they can be accessed here:

Part 1 – Launching a Mutual Fund: Costs of Success

Part 2 - Launching a Mutual Fund: Top 5 FAQs

In this final post, the compliance and regulatory types of questions regarding a fund launch are answered.

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Current Status on the Tax Cuts & Jobs Act Impact to Mutual Funds

Apr 25, 2018 10:00:00 AM  |  Regulatory , '40 Act

Tax considerations are an important aspect of fund accounting, financial reporting and portfolio management for investment firms and investment advisers, and can have significant negative effects on the performance of funds if not addressed in a timely or appropriate manner. Therefore, we are taking the opportunity to provide a status report on the Tax Cuts & Jobs Act (the “Act”) and issues related to the Act affecting our industry.

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FINRA 2018 Regulatory and Exam Priorities

Mar 20, 2018 10:00:00 AM  |  Regulatory , '40 Act

A Condensed Digest for Investment Advisers

In January 2018, the Financial Industry Regulatory Authority (FINRA) published its annual Regulatory and Examination Priorities Letter, which identifies the topics that FINRA will focus on in the coming year.  The Priorities Letter, along with FINRA’s 2017 Examination Findings Report, serves as a resource for broker-dealers to enhance their compliance, supervisory and risk management programs and to prepare for their FINRA examination. Among the topics identified in the letter as areas of focus in 2018 are fraud, high-risk firms and brokers, operational and financial risks – including technology governance and cybersecurity – and market regulation.

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An SEC Office Shares Exam Findings – Key Insights for Compliance Officers

Mar 6, 2018 10:00:00 AM  |  Regulatory , '40 Act

The Fort Worth, Texas regional office of the SEC held a teleconference call in January this year to discuss some of the office’s 2017 exam findings as well as other areas of focus. This was a first-of-its-kind call with registered investment advisers in the region with the purpose of increasing transparency and communication. Even though this was a regional office of the SEC providing outreach and insights, the topics presented are applicable to all registered investment advisers. Following are some of the main points discussed on the call, along with key takeaways.

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Bitcoin – RIC Buyers Beware of Potential Tax Traps

Feb 6, 2018 10:00:00 AM  |  '40 Act , Regulatory

We have all seen the headlines and read some articles related to Bitcoin. What was once an obscure concept on the periphery has now transformed into a digital gold rush. The wild fluctuations in Bitcoin values has piqued both investor and regulatory interest.

The interest in Bitcoin was heightened on December 1, 2017, when the Commodities Future Trading Commission (CFTC) allowed CME Group, Inc. and CBOE Global Markets, Inc. to list Bitcoin futures contracts. The decision by the CFTC seemed to provide legitimacy to Bitcoin from an investor perspective...

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Soaring Across the Big Blue Yonder Known as Blue Sky Laws

Dec 12, 2017 12:01:06 PM  |  '40 Act , Distribution , Regulatory

As an investment manager of mutual funds, have you ever dealt with the complexities of Blue Sky laws which are laws intended to protect investors from securities fraud? More specifically, have you dealt with not knowing how, when or where to register mutual fund shares? Add to that mix the complex federal securities laws and regulations, FINRA regulations, and other regulators, this can result in unnecessary headaches. The highly regulated mutual fund industry can make it difficult to maneuver through the individual state laws of Blue Sky. 

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Mutual Fund Industry Evolution: Trends for Success

Oct 17, 2017 11:00:00 AM  |  Industry , '40 Act , Distribution , Regulatory

CEO and Managing Director, Bob Dorsey, recently spoke with Finance Monthly to provide expert insight for their September issue. In this publication, since he recently celebrated some industry anniversaries, he discusses how the mutual fund industry has evolved and changed in the new millennium. He also dives deeper into the increasing influence of technology, the importance of operations, thriving in the new regulatory normal, and the trends to help investment advisors and fund managers succeed in this new environment. If you would like to read the publication, please link to the full article here.

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What to Examine in Your Annual Compliance Review

Sep 19, 2017 9:30:00 AM  |  Regulatory , '40 Act

The SEC notes that inadequate annual reviews are among the top 5 compliance topics most frequently cited in deficiency letters. Do you know what needs to be tested and what documentation is required for an annual compliance review? And do CCO’s have to perform all aspects of the annual review process?  Rules under the Advisers Act require advisers to maintain records of annual reviews. Do you know what records meet that requirement and how long they need to be kept?...

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