fundserv

The management and processing of all investment transactions, including settlement of payments and the reconciliation of trades.

fundserv is a centralized platform which enables manufacturers, distributors and intermediaries to buy, sell and transfer investment funds over Fundserv Inc.’s secure transactional network.

Challenges

  • Compliance – trades delivered via paper can circumvent compliance process
  • NIGOs – transactions submitted via paper have a high NIGO (Not in Good Order) rate
  • Increasing need for access to greater number of funds
  • Slow processing time from traditional placement and acknowledgement

The Solution

Order processing – transactions begin here

Processing fund transactions through fundserv is done in three simple steps:

  1. Placement – orders are placed real-time through either our interactive network or via our web screens and processed through the transaction forwarding system (TFS)
  2. Acknowledgement –within seconds of placement, orders are verified and corrections are requested before being processed overnight
  3. Confirmation and Settlement – order details are confirmed and information is available for three months to facilitate administration and reconciliation process.

Net settlement – signed, sealed, delivered

fundserv matches transaction orders with the associated contracts, as well as the calculation of settlement and dilution amounts via two applications:

  1. Net Settlement Reporting (NSR) – facilitate settlement instructionsAll transactions acknowledged by the manufacturer during transaction processing are assigned settlement instructions including settlement dollar and unit values, applicable fees and taxes, as well as commissions and dilutions.NSR matches settlement instructions to the original order and calculates aggregate settlement totals per day for all network participants. Totals are adjusted with each new instruction up until the settlement day when they are sent to N$M for the electronic exchange of funds.When accessed through fundserv, NSR allows users to view aggregate totals including details of the orders and settlement instructions which make up those amounts.
  2. Net Settlement Messaging (N$M) – facilitate the automated exchange of fundsAggregate settlement totals calculated in NSR are sent to N$M the morning of settlement. N$M nets the totals, receives electronic payments from participants in a net payable position and makes payments to participants in a net receivable position.

Reconciliation – e-balance your books

fundserv makes reconciliation fast, secure and efficient. Using standardized file layouts manufactures can facilitate a variety of reconciliations and quickly update distributors and intermediaries on client account status.

Reconciliation types:

  • Transaction reconciliation, including post-trade adjustments
  • Monthly position and non-financial reconciliation
  • Commission and trailer fee
  • Segregated fund supplementary detail
  • Transaction history
  • Account ID changes

Features

  • Reconciliation
  • Order entry – Financial and Non-financial transactions
  • Payment of Commissions and Service Fees
  • Reporting
  • Purchase to existing or new account
  • Redemption
  • Switch
  • External transfer
  • Internal transfer to existing or new account
  • Fee
  • Commission rebate purchase to existing or new account
  • LSIF rollover
  • Segregated fund reset
  • In-cash transfer
  • Segregated fund maturity redemption
  • Trade cancellations
  • Trade corrections
  • Daily Net settlement of all transaction types, for all manufacturers and distributors
  • CDN$, US$, Euro
  • On-line summary and detailed reconciliation reporting
  • Regulated by the OSC

Benefits

  • Drastic reduction of paper including cheques, minimizing costs and fraud risk
  • Automated end-to-end transaction process
  • Cost-recovery model pricing
  • 24/7 client support
  • Higher level of security
  • Reduces settlement and reconciliation times
  • Increased reliability
  • Communication through Fundserv’s secure, private, and trusted network
  • Built-in time stamping of messages and retention
  • Audit trail of all communications
  • Industry-driven development
  • Connectivity to over 700 distributors and manufacturers

To learn more about fundserv, email  support@fundserv.com or call 1-800-267-3526.