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Why Manual Intermediary Oversight is No Longer Cutting It

Why Manual Intermediary Oversight is No Longer Cutting It

Oversight is a hot topic in the mutual fund asset management industry. With the SEC stepping up its monitoring and enforcement of fund distribution and fee allocation, third-party due diligence has to be rigorously documented. As a result, it’s become critical to use technology to manage your distribution networks. It’s the only way to make the allocation of services provided to each investor truly transparent. This matters because manual oversight involves mismanaged data and simple human error that can have long-lasting consequences for your brand.

Intermediary oversight programs are necessarily complex, given that they encompass fee management, compliance, oversight and counterparty management. But integrating a complete digital solution with reporting and analytics can do more than reduce compliance risk. It frees up resources for reallocation and creates downstream efficiencies. Further, having all this data accessible can provide unparalleled insights, like being able to real-time rank your intermediaries by risk to determine who should be reviewed and how often.

Yet many firms are still managing their oversight programs manually, by pulling data in from multiple silos across their organization and their counterparties. When digital counterparty solutions can be customized and automated to communicate critical information securely, relying on labor-intensive processes for oversight and monitoring is not just expensive and risky, it limits the potential of your business.

Below, we list five key benefits of a complete oversight solution. Whatever pain points you might have in your oversight process, there’s a relatively painless technology solution, if you have the data enterprise management system to support it.

Reduce associated risk

  • Reduce the opportunity for human error through manually inputted data
  • Flag critical information
  • Create a proper audit trail


  • Configure review profiles so they only contain control objectives relevant to each type of relationship
  • Significantly reduce preparation time for board reports
  • Reduce manual input processes
  • Consolidate information from other technology systems across your organization

More consistent ranking of counterparty risk

  • Consolidating data in a centralized location enables distribution partners to be ranked by each firm’s own unique risk parameters
  • Control objectives and areas of focus can be customized, to define who should be reviewed, and how often
  • Through direct counterparty communication, custom events can be created to communicate critical information such as corporate actions, pricing errors and Department of Labor events.

Simplifies Board Reporting

  • Convenient access to reporting data
  • Pre-canned and configurable reports
  • Out-of-the-box dashboard tracking for all key metrics that track the oversight program
  • Ability to build out detailed/customized displays
  • Reporting on annual review outcomes and the ability to compare responses across firms over time

Organize Custodian correspondence/audit documents/contracts

  • Document vault enabling the most current documents to be stored in a centralized location
  • Central portal for communication between fund and distributor
  • Organized ledger for key contacts between fund and distributor


Please contact us about Delta Data’s back-end solutions and how we can help your firm.


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