Mutual Fund Operations
February 22, 2012 - New York City
Registration Fee: US$895.00 Register Location Instructor
Many classes sell out; we suggest registering at least one week in advance to ensure availability.
Beginner/Intermediate Level, 7 CPE Credits
Instructor: Stanley D. Monsowitz
Hours: 9:00 am - 4:30 pm; Registration/Breakfast begins at 8:30 am
This 1-Day program addresses the Operational Issues of a Mutual Fund. We begin today’s program from the previous 1-Day Introduction class, and spend the day gaining a detailed understanding of all the Operational issues involved in operating a Mutual Fund.
We will gain an understanding of all the Mutual Fund service providers such as: Custodians, Shareholder Servicing and Fund Transfer Agent, Fund Accountant and Fund Administrator as well as having a detailed discussion of “Fund Supermarkets” and how they all interact with each other – including lines of communication and required “Chinese walls.”
We will then discuss the various Settlement scenarios for Mutual Funds and how this market works today, and how it may work in the future, given the new Financial Services Regulations. We will analyze flowcharts of the various settlement options.
We will then end with a discussion of today’s regulatory actions, including Breakpoint issues, Late Trading, Market Timing and the appropriateness of these investments by share classes. We will understand the billions of dollars in fines levied by the regulators and what the industry is doing to prevent future occurrences.
Course Objectives
By the end of this 1-Day course the participants will be able to:
• Understand all the Operational issues involved in processing Mutual Funds
--Proprietary Funds
--Non-Proprietary Funds
• Discuss the order execution through clearing and settlement processing of
Proprietary Mutual Funds
• Recognize the order execution through clearing and settlement processing of
Non-Proprietary Mutual Funds
• Analyze the back-office functions and the processing of Mutual Fund shares
• Understand the concept of a “Fund Supermarket” and the Operations issues involved
• Understand the role NSCC Fund/SERV, Networking and ACAT Transfers play in Mutual
Fund processing
• Describe the current issues arising over Breakpoints, Late Trading, Market Timing and
the various Classes of Shares
--What is the industry doing to prevent these issues from recurring
• Understand other Regulatory issues in today’s Mutual Fund marketplace
• Discuss Best Practices and approaches in dealing with current issues
Session 1: Operational Interfaces – Shareholder Servicing & Fund Supermarkets
By the end of the session the course participant will be able to:
• List and explain major shareholder servicing functions
• Identify transfer agent operations
--Proprietary Funds
--Non-Proprietary Funds
-- NSCC/Fundserve/Networking/etc…
--ACAT Transfers
• Analyze each transfer agent function/operation
• Discuss and create flowchart of shareholder transactions
• Examine transfer agent disbursements from fund to shareholder
--Dividends and distributions
--Shareholder redemptions
• Discuss common operational interface problems
• Describe the Operations of Fund Supermarkets
Session 2: Operational Interfaces – Custodian
By the end of the session the course participant will be able to:
• Identify and explain custodians including:
--Major custodian functions
--The role of the custodian bank in portfolio operations and expense disbursements
--The role of the custodian bank in shareholder investment transactions
--Fund responsibility in investment portfolio transactions
--Common operational interface problems – a discussion matrix
--Primary differences in responsibilities between book-entry vs. physical
Session 3: Operational Interfaces – Accounting & Fund Accountant
By the end of the session the course participant will be able to:
• Identify and explain the fund accountant including:
--Role of the mutual fund chief accounting officer
--Role of the fund accountant
--Responsibilities
--Additional fund accounting responsibilities
--Rule 2a-4
--Common operational interface problems – a discussion matrix
Session 4: Operational Interfaces – Portfolio Transactions
By the end of the session the course participant will be able to:
• Identify and describe portfolio transaction flows
• Investment Manager Profitability Analysis
• Common Operational Interface Issues identified
Session 5: Review of Mutual Fund Breakpoint Issues, Market Timing & Late Trading as Well as Other Recent Issues
By the end of the session the course participant will be able to:
• Discuss recent issues including:
--Background of recent breakpoint issues
--Where to look for Breakpoint issues
--Issues of Late Trading
--Issues of Market Timing and rule 22c-2
--Comparative Analysis of All Operational areas and their Compliance requirements
Session 6: Final Review
• Final Discussions & Questions
• Final Glossary items