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Helping you prepare for XML order entry conversion

Recent updates to ESG Standards V15

Future Standards release dates

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By Dominic Ionadi

In addition to the XML Order Entry conversion, ESG v15 features extensive improvements to the Fund Setup process. An expanded file and enhanced process flow are key components of the new standard. FundSERV will distribute Fund Setup (FD) file updates to distributors who opt to receive them at the end of each day, whenever available. The new Fund Confirmation (FC) file, which provides details of all changes actually applied to the FundSERV fund database, will also be available. The process ensures that accurate and timely fund information is available and assists in the automated updates of a distributor fund system. In the past, manual processes were required because the file contained little useful information. Important fund attributes, such as PAC/SWP eligibility, commission and service fee rates, DSC fee schedules, trading restrictions and distribution information are now mandatory fields.

Working group defines standard

An ESG working group was established to define the file contents and usage. The group was made up of a cross-section of industry participants and chaired by Richard McMullin, Team Leader, Investment Fund Services, CGI. Their key objective was to develop a file layout that would provide enough information for a distributor to update their fund list. "The FD file was historically used as a method of communicating fund setup information from the fund companies to FundSERV," says McMullin. "The fund manufacturers then contacted the distributors individually to inform them of upcoming fund introductions and changes. The current FD file changes enhance the process to automate the distribution of fund information to the distributors." Prior to ESG v15, the lack of information in the FD file forced distributors to rely on paper-based communication such as fund fact sheets in order to build an accurate fund profile.

Meeting throughout the spring and summer of 2003, the group defined what the new file would look like and how it would work. Their proposal was approved by the standards steering committee (SSC) and the new standards were published in the ESG v15 standards last October.

The long-term objective is to have a completely automated system where fund changes will be automatically confirmed. "The current changes to the FD file are the first step in providing a more streamlined communication between the fund companies and distributor back offices. Eventually, the FD file could be used as a low cost, effective replacement for third-party data feeds currently used by distributors," says McMullin.

Detailed information on the new file process can be found in the Fund Setup Technical Paper in the ESG v15 Standards.

FD File Working Group

FundSERV streamlines internal FD procedures

Along with the programming for the new standards, FundSERV has overhauled the way FD files are loaded and processed. In the past, files were picked up and manually loaded by FundSERV staff. With the new process, loading and validation of files is automatic, meaning files are edited and automatically queued for upload to the production database on the effective date. Files will be picked up and processed from 06:00 to 14:00 each day. It is important to note that any file sent after the 14:00 cut-off will not be processed until the following day.

While this streamlined process creates greater efficiency, it also puts a greater onus on fund companies to ensure that all data sent in the FD files is accurate. It is no longer possible to rely on FundSERV technical support staff to take verbal instructions to correct a fund company FD file. Paula Olson, manager of FundSERV technical support, UAT and QA, is very familiar with the challenges associated with the old process. "We need to stress to all the fund management companies the importance of accuracy and timing when creating these files. With the new automated process, the tech support team will be unable to intervene prior to loading of the files as is the case today," says Olson. All fund companies should carefully examine their own FD creation procedures to determine if they need to be changed.

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