FundSERV Inc. has announced its network upgrades will be ready this spring to support the investment industry’s implementation of CRM2.
“We began incorporating CRM2 functionality last fall as part of a much larger systems upgrade, which also completed our conversion from flat files to the XML file format,’ said Robert Smuk, president and CEO of FundSERV.
This new functionality enables fund managers to report trailer fees and commissions at the investor account level and provide distributors with the necessary details to prepare and test new cost and performance reports to meet CRM2 requirements. Now in the final test phase, the CRM2 functionality will become mandatory for manufacturers by June 2015, which gives dealer firms sufficient time to prepare before issuing their first CRM2 cost and performance reports with a year-end in 2016.
FundSERV has also enhanced its FUNDcom inquiry application. This tool became increasingly valuable in July 2014, when new pre-trade disclosure requirements came into effect as part of the first phase of CRM2. FUNDcom is a portal that provides secure access for financial advisors, their assistants and head-office administrators, to account information across 280 fund manufacturers without having to login to individual fund company websites or databases.
In addition to supporting the CRM2 requirements, FundSERV enhanced its network to facilitate the transfer of information under the Foreign Account Tax Compliance Act (FATCA). Information on reportable accounts may be transferred from dealers to fund managers through FundSERV so that fund managers can report the information to CRA.
Using FundSERV technology, fund managers can ascertain which dealers have signed the dealer client name agreement so that fund managers do not need to collect multiple dealer signatures on their own. Additional changes for FATCA are expected in November 2015.