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Achieving Excellence in Reconciliation and Exception Management
Processing transactions in a context of increasing transaction volumes and regulatory pressure continues to represent a major operational and technical challenge for Financial Organizations.
As a result financial institutions are focused on implementing new capabilities and services to ensure better internal controls of transactions through improved reconciliation and exception management processes. Business and technology leaders play an equally crucial role in delivering the changes required. They will have work together to make the right investment and implementation decisions to address this new set of challenges relating to data quality, end-to-end execution and total cost of ownership.
So, today and in the next 5 years, what will Internal Controls and Reconciliation challenges look like?
How should organizations respond to new Reconciliation and Financial Control regulatory constraints and manage the practical implications? How can Technology prepare and be positioned to offer a robust architecture framework and what key components are needed to support the challenge of an end-to-end reconciliation process?
This expert point of view identifies key issues and sets out the range of possible issues and solutions that can be better exploited to address these challenges. It invites the financial industry to recognise the importance of having an end-to-end vision of the controls, reconciliations and exception management processes needed in their organizations - a future where there are efficient and effective methods, processes and technical solutions in place for all classes of assets and transaction types.
Prime Brokerage Industry Developments
With the focus of many institutions to combine their clearing business within the Prime Brokerage infrastructure and to provide best of class technology and service levels, many investment managers are evaluating closely their choice of Prime Broker (PB). The winners will be the PBs that add maximum value to their customers whilst minimising their infrastructure costs. What will be the key differentiators impacting the client’s decision when choosing a PB?
FATCA: An Overview
In March, 2010, the U.S. Treasury enacted the Foreign Account Tax Compliance Act (FATCA), requiring financial institutions to enhance their due diligence processes and be able to identify US individuals or legal entities that have invested in non-US financial accounts or non-US entities to prevent those US individuals or entities from hiding assets and income abroad. This Point of View explains the importance of aligning all the key stakeholders across the entire organization (Legal, Tax, Operations, Risk, Technology) in order to successfully comply with FATCA, and explores the key challenges and opportunities deriving from this regulatory evolution.