Unexpected market closures, like the one we experienced recently for the funeral of former President George H. W. Bush, put the mutual fund industry in a precarious position. And while they don’t occur very often, when they do — it puts operations teams under serious strain, especially on the distribution side. Read more
Every year, we have the privilege of bringing our clients together to talk about industry trends and discuss our latest product updates. It’s hands down the most instructive three days for us at Delta Data. They help us draw our innovation roadmap and keep our efforts focused on solving their problems rather than chasing the buzzwords in the headlines. I may be the CEO of Delta Data, but I’m proud to say that our clients truly guide the direction of our company. And I wouldn’t have it any other way. Read more
On August 31, 2018, President Trump signed an Executive Order on Strengthening Retirement Security in America. This EO directs the US Department of Labor and the Treasury to consider issuing regulations and guidance that would (1) make it easier for businesses to offer association retirement plans, also known as multiple employment plans (MEP), (2) improve the effectiveness of and reduce costs of furnishing required plan notices and disclosures, to include broader use of electronic delivery, and (3) update life expectancy and distribution period tables for purposes of required minimum distributions. Read more
Twenty years ago, email was coming into its own as a simple and effective solution for counterparty communications important information to large groups of people – a significant technological upgrade to faxes. For the fund industry, this has long been the standard for disseminating important information about products to the firms who distribute and service them. As the years went on, the industry has clung to the email based system ever since, despite the industry growing and becoming more complex. Read more
It’s indisputable that fintech is rapidly changing the landscape of financial services. It seems as though there’s a new innovation every day promising that Mutual Fund asset managers can leave their outdated legacy systems behind. Broker-dealers have been particularly hampered in recent years due to where they sit in the mutual fund supply chain. They are pulled in all directions, whether it’s their fund company partners adding or altering share classes or responding to demands from their investment managers around product availability, performance, and transparency. Read more
The SEC voted on Wednesday to delay the compliance date of the classification requirement of the Liquidity Rule in what turned out to be a whirlwind of a week for the regulatory body.
With a delay now formalized, fund firms with more than $1 billion in assets now have till June 1, 2019, to comply with the classification requirements, while smaller firms have till Dec. 1, 2019. The SEC also issued an FAQ document detailing compliance requirements for the rule, which you can find here. The other requirements of the rule still go into effect December 1, 2018, for large funds and June 1, 2018, for smaller funds. Read more
Delta Data is pleased to announce that David Riley, Vice President, Client Success Management, has been chosen to serve as a member on NICSA’s Technology and Innovation Committee. He joins the 19 other existing committee members who were appointed by the Committee Chairpersons in consultation with the NICSA President and nomination by a current Board or Committee member. Read more
The long awaited result of the SEC’s distribution in guise sweeps hit today; you can find the link here. Many of the points covered were expected, and most of the requirements for compliance identified are currently supported by the Oversight platform Delta Data actually developed in anticipation of this guidance. Here is the overarching theme in this news: the 12b1 plan represents the only funds that can be used for distribution expense, and anything that promotes sales in any way, whether direct or indirect, must be allocated as an expense to the advisor and/or other relevant service providers, not the fund. Fees related to distribution in excess of the 12b1 plan must be allocated to the advisor and/or other relevant service providers.
SEC Cranks Up Probe Into Fund Firms’ Fees
Inquiry centers on whether money managers are properly disclosing additional costs to investors
By Kirsten Grind
July 16, 2015 6:54 p.m. ET
U.S. securities regulators are examining whether mutual-fund managers are dipping more deeply than allowed into their investors’ money to compensate the brokerages that distribute their products, according to people familiar with the matter.
OppenheimerFunds, Franklin Templeton and J.P. Morgan Chase & Co. are among more than a dozen fund firms that have been reviewed by the Securities and Exchange Commission, which began a broad sweep of how companies sell their products about two years ago, these people said. In recent weeks the SEC’s examination unit referred some of these firms to its enforcement division, these people said. It isn’t known if the SEC will take action against any money managers. Read more