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Whitepapers

Our subject matter experts understand your reporting challenges. Whether the focus is on a current regulatory change or a current process that can be simplified, Confluence whitepapers are written with the intent to provide information that fund administrators can use to do their jobs.

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RegTech: Bringing New Meaning to Compliance and Cloud Technology in Asset Management

The Evolution of the Compliance Function and Disruption of Data Usage with the Cloud

Over the past five years, increased regulation and regulatory reporting obligations have put compliance and regulatory teams in the spotlight a little more than they would like. At the same time, compliance failures, highlighted by regulatory scrutiny that lead to fines, have resulted in a huge surge in hiring and expansion of teams.

While additional headcount spreads out the work in the softer areas of research and managing regulatory change projects, it is potentially less effective in the process-driven areas of internal monitoring, compliance testing and overall reporting. These ar-eas are heavily reliant on having a robust and effective compliance program in place – one that includes a methodology that matches both the organisational structure of the team and their working practices.

Written by Confluence
Published November 9, 2016

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SEC Modernization Readiness Guide

The Securities and Exchange Commission (SEC) released three major proposals in 2015 impacting mutual funds: Investment Company Reporting Modernization, Liquidity Risk Management and Use of Derivatives. All three are anticipated to move to final rule before the end of 2016, with full compliance following thereafter.

As a technology leader committed to solving the fund industry's growing global regulatory challenges, Confluence has developed this readiness guide to help the industry grasp the magnitude of the SEC Modernization challenge. This readiness guide provides an overview of the proposed rule and its challenges. It also provides practical guidance on how to prepare to comply with the requirements of Form N-PORT, Form N-CEN and amendments to Regulation S-X.

Written by Confluence
Published September 22, 2016

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Outsourcing in Performance Analysis: Assessing the Value-Add

For years, asset managers have outsourced various functionalities of their back-office operations in order to cut costs, keep up with technology changes, and eventually beat volatility and increase growth. Today, as firms are facing a "perfect storm" of regulations, technological evolution, market conditions and increased competition, they have put outsourcing back on their agendas to help achieve their goals.

Firms that have already outsourced part of their back-office operations, such as data management, corporate actions, and even trade processing, seem to be now looking at performance measurement functionalities as the next candidate for outsourcing.

This whitepaper will discuss why outsourcing within the performance measurement industry is becoming a trend and identify the challenges performance teams can face when approaching an outsourcing project.

Written by Confluence
Published July 28, 2016

Best Practices to Achieving an Efficient Fixed-Income Attribution Model

The establishment of a fixed income attribution process first requires an excellent understanding of how bond portfolio managers structure their portfolios to achieve returns that justify the choice of active exposure to different risk factors. After identifying the various investment decision processes, it becomes necessary to have a flexible tool to adapt the models to these investment processes.

The choice of models is also directly determined by accessible data - this data may not, perhaps, be available immediately, but it can be obtained efficiently. The chosen solution should not only be able to validate the data before calculations are performed (pre-calculation validation) but also allow validation tests on the effects of the attribution (post-calculation validation) in order to ensure that they are in line with market developments. If the models are comprehensible and the results validated and accurate, then fixed income attribution contributes greatly to the asset management value chain.

Written by Confluence
Published May 16, 2016

Sophisticated Client Demands and Their Impact on Performance Scalability

In recent years, clients have been looking for different ways to achieve better performance. They are moving away from traditional asset classes, preferring more complex products that deliver better alpha and reduced risk. But with more sophistication come new requirements. Asset management firms have had to answer their clients' needs for more transparency, better accuracy and better client service models. Today, there are growing demands, including the impact they have on the overall scalability of performance applications. The whitepaper will discuss the challenges performance teams are facing when trying to achieve scalability and describe various approaches for addressing them.

Written by Confluence
Published February 1, 2016

Meeting the AIFMD Transparency Reporting Challenge with Confidence

AIFMD is the most significant operational challenge ever for most alternative fund managers, with a new division of labour and responsibilities, specific limitations on how funds may conduct business, and new, highly detailed reporting of their investment strategies and holdings. These detailed reporting requirements are designed to provide EU regulators with a deeper understanding of alternative financial flows, the nature and sources of risk, where such risks are concentrated, and their implications in times of market stress. This white paper will discuss the scope and nature of the AIFMD transparency reporting requirements for fund managers and will describe various approaches for addressing them in a timely manner.

Written by Confluence
Published December 20, 2013

Five Drivers of the Cloud in Asset Management

This whitepaper details why financial services technology providers are turning to cloud as a delivery model that leverages both its inherent benefits -- business agility, flexibility, scalability and lower TCO – and one that most effectively meets the escalating globalization and mobilization needs of their asset management clients. Astute business leaders and their IT counterparts are embracing cloud as a strategic differentiator and one that provides a competitive advantage. Learn why, for asset management in particular, five market demands are driving SaaS adoption – lower TCO, increased scalability, globalization, greater agility and mobile demand.

Written by Chris Evans, Chief Architect and Product Manager of the Confluence install, hosted and SaaS platforms
Published January 15, 2013

Responding to Regulatory Change with Agility and Control

Partnering for Success in the Asset Management Back Office

This whitepaper details the increasing regulatory change within the financial services industry and how firms can partner to respond with agility. The paper examines the complex global landscape of financial services regulatory changes and the impact on reporting requirements. New regulations are coming at an unprecedented pace and financial institutions are under great pressure to not only understand and track the changes, but to also evaluate and implement regulatory compliance software solutions. Risk-aware institutions must be willing to invest in people and technology to help mitigate future risk. 

Written by Melvin Jayawardana, Confluence Product Manager responsible for leading our initiative to further expand our statutory and regulatory reporting platform globally
Published January 15, 2013

SEC Modernization: Partner with Confluence to Achieve Readiness

Confluence has prepared this one-page executive summary about Investment Company Reporting Modernization, or SEC Mod, as a quick reference to what it is, what tasks you need to include in your readiness plans and how Confluence can make achieving readiness far less painful.

As all of the following information and recommendations are based on the proposed rule and not the final rule, it is possible that there will be changes upon finalization by the SEC. Confluence will work quickly to update any information that may be affected by the final rule.

Published January 1, 2008