Citi has established a service for clients facing the SEC’s Rule changes affecting the US mutual fund industry later this year. The SEC’s reporting modernisation and liquidity risk management rules place an added operational burden on asset managers. Compliance with the rules requires additional market data, analytics and new reporting infrastructure.
Upcoming rule changes will have a dramatic impact on mutual funds as they will substantially increase automation, data collection and reporting requirements. Regulators and investors will have a level of visibility into mutual funds never before obtained. Citi has partnered with MSCI and Confluence to help clients satisfy the SEC’s reporting modernisation and liquidity risk management rules. The collaboration will result in an efficient and effective model that will assist Citi’s clients in meeting the new requirements.
“Together with MSCI and Confluence, we will create a set of user-friendly services that will help mutual fund managers navigate this complexity with transparency and control,” says Jay Martin, head of North American custody and fund services, at Citi.
“Asset managers are making their final decision on what solutions to implement as the SEC compliance deadline approaches. MSCI seeks to help them establish prudent liquidity risk management practices and an efficient N-PORT reporting solution,” adds Jorge Mina, head of MSCI Analytics. “We are very pleased to have been selected by Citi to support their plans to comply with the new regulatory requirements.”
Citi’s clients will be helped complying with the SEC’s new requirements. MSCI will optimize the delivery of its data and risk and liquidity analytics for easier integration into Confluence’s Unity NXT Regulatory Reporting solution. These analytics include the calculation of market risk sensitivities at a portfolio and position level, and the classification of funds’ investments into liquidity buckets, as outlined in SEC Rule 22e-4. Citi’s clients will receive easy and efficient access to the data and analytics they can leverage to comply with the SEC’s Form N-PORT requirements.