Converting regulatory burdens into operational improvements

When outsourcing work (and that happens a lot), Fund Management Companies (FMCs) are still required to keep all information about operations, financial instruments, and duties. The purpose is to properly fulfil oversight obligations – as formulated in international Directives and internal rules. But the need is generated by the fact that, ultimately, the responsibility for all these actions lies on the ManCo itself.

Depowise empowers FMCs to do so through user-friendly visualization and automation. Oversight becomes substantially easier, and FMCs are able to seamlessly track outsourced activities, from core tasks to more marginal activities.

How to overcome the excessive fragmentation of partners and information?

Breaking down complex, composite business activities into smaller tasks is a long-term trend that does not spare the investment industry. The agents carrying out these activities are expected to keep up with the ever-increasing skill and knowledge requirements for executing daily tasks. Operational success is largely defined by the FMCs ability to pull all the strings back together into a coherent system. Understandably there are also some tasks that just do not pertain to the competence of FMCs. Outsourcing said tasks to partners is a competitive option, assuming you have the necessary tools and know-how to operate with the external input.

FMCs are part of a composite network that ties them inextricably to:

  • Depositary banks;
  • Global custodians;
  • Prime brokers;
  • Clearing service providers;
  • Securities lending brokers;
  • OTC and derivatives collateral managers.

Storing and structuring external data has become a foundational part of FMCs. Depowise removes the operational burden of these responsibilities and instead increases efficiency by standardizing data formats and offering a complete and comprehensive overview of all channels.

A new way to do things…

For a long time the aforementioned tasks have been seen in the industry mostly as necessary burdens instead of opportunities to increase transparency and control. Depowise achieves both whilst removing any margin of operational error by taking care of the data harmonization, orderly and storage inter-channel communication.

Via the built-in Data Warehouse, Depowise empowers FMCs with accountability and legitimacy at all times through data ownership. Allowing a ManCo to 1) keep information about all operations carried out, 2) by all partners, 3) available at all times.

At the same time, the Fund Dashboard provides ease of visualization and immediate insights into all the data that is collected and stored. This way, all core tasks of FMCs that require on-point business intelligence are accounted for.

Our depositary banking solution takes care of:

  • Monitoring the custody network management activities, i.e. in the oversight of sub custodians;
  • Identifying significant cash flows, on a daily basis, when there are inconsistencies with funds’ operations;
  • Historical cash-flow disputes;
  • Investment compliance breaches identified or advised during different periods.

Our fund oversight solution takes care of:

  • NAV reporting delivery and NAV variance monitoring;
  • Performance fees, receipt and review;
  • Budgets and expenses;
  • NAV error resolution process;
  • Payments distribution.

Reconciling and keeping track of everyone’s activities is easier when technology offers a helping hand. With Depowise, FMCs can keep their own data backyard always in order, and outsource specialized tasks without worries when it comes to oversight duties.

 

Interested in hearing more on how Depowise could benefit your company?

Let’s talk Depowise in greater detail. Contact our Founder and Solution Architect, Sven Peekmann, at sven.peekmann@depowise.com. We will arrange a demo and show you how the solution could benefit your bank or Fund Management Company

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