FundSERV Update June 15, David Purewal CA, CPA, CRISC, CISA Director Finance, Risk & Administration

Transcription

1 FundSERV Update June 15, 2012 David Purewal CA, CPA, CRISC, CISA Director Finance, Risk & Administration

2 Coming together is a beginning. Keeping together is progress. Working together is success. Henry Ford

3 Agenda 1. Business Update Financials Data centre complete 2. Standards (XML Conversion) 3. Marketing Plan FUNDcom GICSERV FundFacts Client Name (EPA) Offshore Funds DTCC

4 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 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!

5 Data Centre Rebuild Rebuild completed within the current location 10 year lease extension in Exchange Tower Proved our ability to run network & apps from 2 nd site for extended period of time FundSERV BCP test coincides with IIROC BCP test Will participate in IIROC BCP test (Sep 12)

6 FundSERV Standards XML File Benefit: FundSERV laying the groundwork for the future of the fund industry Implemented 1 st 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 A business that makes nothing but money is a poor business. Off cycle changes to accommodate FATCA and NI as required

7 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

8 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?

9 FUNDcom Current Inquiry Options: Account holdings/transaction history Hypothetical redemptions PAC/SWP/AWD Distributions Demographics 10% Free DSC GMWB 2,500,000 2,000,000 1,500,000 1,000, ,000 Dealer A Dealer B Dealer C Dealer D Dealer E Dealer F

10 GICSERV Update

11 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

12 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

13 Functional Delivery 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

14 Key Features 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

15 Future Enhancements Dealer to Dealer Transfers via CDS ATON Met with FAS Transfers Subcommittee Interactive Order Messaging Re registrations Non Financial Updates CDIC Nominee Trust Reporting

16 Milestones Launched GICSERV.com April 11 Published Standards v1 Sept 11 QA Testing Present Industry UAT Testing v1 Q3/12 What is my vendor doing to prepare for GICSERV? Will we be ready? GICSERV is coming!!

17 FundFacts

18 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 fund facts to clients directly from site. Interface to Fund Co websites Can accommodate POS audit trail if needed

19 Client Name Automation -EPA V.S. Efficiency is doing BETTER what is already being done

20 Client Name Automation -EPA Why? 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

21 Client Name Automation -EPA 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 Canada Mackenzie Financial, RBC Funds, SunLife Global Investments Dealers: Assante, Dundee, Portfolio Strategies, Qtrade

22 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.

23 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