By: Richard Clark
The Securities and Exchange Commission (SEC) recently adopted changes to modernize the reporting regime. The changes will affect approximately 12,000 funds and the first new reports will be due July 30, 2018.
Registered funds will now be required to file new monthly portfolio reporting and annual reporting forms.
The forms will require new data elements and information, including:
- Categories of collateral
- Risk metrics
- Position-level liquidity bucketing
- Additional derivative disclosures
- Securities lending and repurchase/reverse purchase arrangements
The liquidity risk management rules will require mutual funds and ETFs to establish liquidity risk management programs that address several elements, including classification of the liquidity of the fund portfolio investments. The rules also strengthen the 15% limit on illiquid investments including filing Form N-Liquid for breaching the 15% threshold.
To meet the new requirements, fund management companies and service providers will need to invest in people, processes, and technology to effectively manage:
- Data sourcing, normalization, enrichment, and aggregation
- Tight filing deadlines
- Complex calculations
- Building subject matter expertise
- Board and management reporting
The state-of-the-art CORE reporting platform from SS&C GlobeOp effectively manages SEC modernization. CORE gathers all records needed to prepare regulatory reports, monitor liquidity risk management, and provide information on attribution and risk and other reporting needs. With a minimum data set from existing client reports, CORE enriches, normalizes, and aggregates the data to meet the requirements of SEC modernization and other regulatory requirements.
Key features include:
- Data normalization – the centralized platform enables full transparency, customizable logic, complete audit trail, and field mapping recognition from existing reports
- Data enrichment – SS&C GlobeOp provides central security master, pricing engine, and risk attribution data
- Rules application – functionality applies logic at multiple levels to further classify and supplement data
- Data validation – built-in data validation logic ensures accurate processing of data
- Future-proof model – golden source of data helps meet regulatory requirements and other reporting needs
SS&C GlobeOp, which was first to market with its Form PF service in 2011, is ideally positioned to help meet the challenges of SEC modernization.
Our CORE solution provides minimum disruption to existing operating models, a sophisticated and scalable enrichment solution that reduces operational burden, quick time-to-market on new regulation, multi-zone client contact support framework of dedicated subject matter experts and developers, full XML filing support, and management and board reporting.
To learn how CORE can help you, contact us at firstname.lastname@example.org