How does the regulatory environment look from a technology and operations perspective? Recently, there was a surprise SEC ruling on uniform fiduciary standards that’s caused a lot of concern on the broker-dealer side about what it means for their reps to be fiduciaries. Also, RIAs will have some of the same requirements for data retention and collection as broker-dealers. What do regulatory standards mean for us as an industry?
This post is a summary of a session from the MMI 2011 Fall Solutions Conference that was held in NYC. It is part 1 of a 2 part series.
Heeren Pathak – CTO, Vestmark, Inc. Responsible for continued development and direction for the wealth management platform.
John Ashefski – Senior VP & Managing Director, Investment Management Services, SEI Investments. John is responsible for SEI global outsourcing services.
Cheryl Nash – President, Investment Services, Fiserv. Cheryl is responsible for driving strategic vision and direction for Fiserv’s managed accounts platform solution.
Chandresh Iyer – Managing Director, Head of Global Custody & Investment, Citi Global Transaction Services. Chandresh is responsible for P&L, including product strategy, business management and client franchise development across investor client segments including fund managers, hedge funds, banks, insurance, wealth managers.
Roger Paradiso – President and Chief Investment Officer, Private Portfolio Group, Morgan Stanley Smith Barney. Roger was the originator of the unified managed account and is responsible for the UMA platform at MSSB, driving technology direction, product development and investment policy.
What can firms do now to prepare for upcoming SEC regulation changes, even though theyhaven’t been finalized?
Cheryl was at the Tiburon conference last week and there was lots of discussion around the SEC ruling. The consensus was that the Uniform Fiduciary Standards won’t be implemented until after the election. From Fiserv’s perspective, a lot has to do with transparency, understanding what’s in your investment models and how visible it is to the end investor.
Fiserv has invested a lot to ensure transparency in their solutions, Cheryl noted. Starting with important front office functions such as planning and investment policy statements and making sure they translate through to trading and reporting to support execution of an investor’s household plan.