Annual Survey From Boston Financial Points To Oversight Challenges For Mutual
2013 Results Indicate Need for Enhanced Oversight Programs As Reliance on
Financial Intermediaries Continues To Grow
QUINCY, Mass., June 26, 2013
QUINCY, Mass., June 26, 2013 /PRNewswire/ -- Boston Financial Data Services,
Inc., a leading financial services provider, today announced the results of
its third annual Financial Intermediary Administration Survey.
The 2013 survey measured mutual fund company opinions on their current
Financial Intermediary (FI) practices, how they interact with their FIs, and
what tools they use or need to manage their overall compliance and operational
obligations. This year's results show that as omnibus processing and the
reliance on FIs continue to increase, fund companies are facing ongoing
challenges in overseeing their FI relationships.
Nearly all (96%) of the survey's respondents anticipate that their obligation
to manage FI relationships will increase over the next three years, primarily
due to SEC interest (92%) and interest at the fund Board level (69%). Notably,
98% of respondents said the greatest challenge in managing these FI
interactions is Legal/Regulatory Risk - nearly double the 2012 number.
"It's clear that achieving transparency is critical to an effective Financial
Intermediary oversight and risk management program," said Michael McNeill, a
managing director at Boston Financial. "The survey tells us that the negative
effects of not having a strong process in place are significant."
The 2013 survey also reported that just slightly more than 10% of respondents
were 'Highly Satisfied' with their current internal oversight programs,
indicating a desire by fund companies to enhance their existing programs.
As the largest provider of transfer agency services in the U.S., Boston
Financial is uniquely positioned to gain input from fund companies on their
needs and compile their views on the business landscape. The firm uses its
annual survey results to develop timely and relevant solutions that assist
mutual fund providers with a wide range of Financial Intermediary oversight
In response to current business needs, Boston Financial recently introduced
FIA^TM Solutions to provide fund companies intermediary data and relationship
information, to improve intermediary payment administration, and to simplify
inspection and monitoring obligations.
About Boston Financial
Boston Financial Data Services, Inc. is one of the industry's premier
outsourcing providers servicing the financial marketplace. Founded in 1973,
Boston Financial is a joint venture between DST Systems, Inc. of Kansas City,
MO. and State Street Corporation of Boston, MA. The joint venture has enabled
Boston Financial's clients to utilize DST's industry-leading software and
technology while benefiting from the institutional support and global reach of
State Street. For more information, visit www.bostonfinancial.com/fia.
Ann Marie Mierzykowski
Boston Financial Data Services, Inc.
SOURCE Boston Financial Data Services, Inc.
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