Doing More with Less: Exception-Based Processing

Reprinted with the permission of SourceMedia, Inc.

Automated exception-based processing reduces time, expense and the number of resources required for reconciling and validating critical investment data. Through automation, mutual fund companies can drive up their fund accounting ratios and grow operations without increasing staffing.

Author:   Mark Spanos
Business:   Asset Servicing
Publication date:   November 2011

AIFMD Changes Europe's Euro 2 Trillion Alternative Investment Fund Industry

The AIFM Directive introduces harmonized rules for managers of alternative investment funds that are sold to EU investors. The Madoff fraud, the Lehman experience (impacting hedge funds) and the political desire to create more transparency around hedge funds and private equity funds were immediate catalysts for this new directive. This paper outlines the Directive, examines the impact on the fund value chain and the deepening manager - service provider relationship, reviews the increased depositary duties and liabilities as well as the new hedge fund - prime broker depositary models.

Business:   Asset Servicing
Publication date:   November 2012

MiFID II - Expanding Regulatory Reform in Europe

The Markets in Financial Instruments Directive became a core pillar in the European Union financial markets regulatory system when it was implemented on 1 November 2007. The Directive's main objectives were to increase competition, improve investor protection and, combined with other Directives, help create a single market for financial services and activities in the EU. The key measures implemented through the directive were: best execution and order-handling practices, categorization of clients, investment research, conflicts of interest, outsourcing, transaction reporting, pre- and post-trade transparency and regulation of trade-related market infrastructure. The objective of this paper is to provide BNY Mellon's perspective on the impacts of changes to The Markets in Financial Instruments Directive as proposed in a package of amendments and a regulation currently under consideration by the European Parliament and the European Council.

Business:   Asset Servicing
Publication date:   March 2013

Money Funds at Continued Cross Roads

Reprinted with the permission of SourceMedia, Inc.

Given the authority granted to the Financial Stability Oversight Council and the Federal Reserve by the Dodd-Frank Act, these regulators have been provided with a broad brushstroke to implement financial reform. With the intention of creating a stronger and more stable money market, the impact will most likely be increased oversight, further reporting requirements and more stringent guidelines designed to reduce potential systemic risk by a nonbank financial company.

Author:   Jim Cecere
Business:   Asset Servicing
Publication date:   October 2012

Q&A - Trends and Challenges Facing the ETF Marketplace

Reprinted with the permission of Institutional Investor, Inc.

Get the latest insights on the exchange-traded fund industry from Joe Keenan, Head of Global Exchange-Traded Fund Services, BNY Mellon.

Author:   Joe Keenan
Business:   Asset Servicing
Publication date:   September 2012

Trends in Environmental, Social, and Governance Investing

Post the financial crisis of 2008, demand for greater transparency and closer investment monitoring has driven the sophistication of risk management and compliance programs. One area that has seen a growing focus is the screening of investments for sensitive issues; otherwise known as Socially Responsible Investing (SRI) or Environmental, Social, and Governance (ESG) screening. Fund Sponsors, recognizing that societal concerns are impacting investment decisions, are adopting ethical considerations within the investment management process in implementing SRI/ESG and risk mitigation strategies.

Authors:   Greg Stewart, Scott Berard, Ed Fruscella
Business:   Asset Servicing
Publication date:   October 2012

Insights in the ETF Market

Reprinted with the permission of Institutional Investor, Inc.

Get the latest insights on the exchange-traded fund industry from Joe Keenan, Head of Global Exchange-Traded Fund Services, BNY Mellon.

Author:   Joe Keenan
Business:   Asset Servicing
Publication date:   December 2011

Evolution in Risk Reporting: What's Next?

Reprinted with the permission of CFA Institute

The process of measuring, monitoring, and reporting risk has taken on increased importance during the past decade. In particular, the financial crisis of 2008-2009 highlighted the need for portfolio-level and firm-level risk management and hastened the pace of adoption of a formal risk management infrastructure for investment management firms.

Author:   Frances Barney
Business:   Asset Servicing
Publication date:   March 2012

Latin Trade, Investment Prospects and the U.S. Election

Reprinted with the permission of The Rio Times, Inc.

In the context of the Presidential election, it remains to be seen what prominence U.S.-Latin America trade relations are afforded, but the opportunities in a region that boasts some of the world's fastest growing economies should not be missed.

Author:   Michael Kalavritinos
Business:   Asset Servicing
Publication date:   March 2012

Luxembourg Aligns Specialised Investment Funds Law with AIFMD

On 6 March 2012, the Luxembourg Parliament adopted a new bill, amending the Luxembourg law of the 13 February 2007 on Specialised Investment Funds (SIF). The Law will introduce several important changes to the regime governing SIFs and will effectively create an Alternative Investment Fund Managers Directive (AIFMD) compliant Alternative Investment Fund (AIF) vehicle, ahead of AIFMD coming into effect. The amended SIF Law introduces rules on delegation, risk management and the handling of actual or potential conflicts of interest.

Authors:   Brian McMahon, Rolf Bachner, Yenni Leighton
Business:   Asset Servicing
Publication date:   March 2012