Mutual funds are among the nation’s most heavily regulated industries, and the burden of satisfying compliance with investment limit restrictions has grown rapidly. As the need for daily testing becomes the norm, conventional manual methods of tracking, testing and reporting trade exceptions are becoming unmanageable.

“Manual processes lack controls that can compromise data integrity, impede testing performance, and may result in costly errors,” said Kirk Botula, Executive Vice President and Chief Operating Officer of Confluence. “Automated post-trade compliance testing provides many benefits, in addition to reducing costs. Automation can eliminate the risk of violations going undetected for extended periods of time. It can also elevate service levels by meeting demands for more flexible, accurate and timely reporting. By establishing daily, comprehensive testing without increasing staff, administrators gain the flexibility to readily adjust to business and regulatory changes, while maintaining existing staffing levels.”

Post-trade compliance is the monitoring of changes in a fund’s portfolio due to investment decisions made by advisers against pre-established investment restrictions. The goal is to identify actual and potential violations that could adversely impact the shareholder. Fund administrators are obligated to oversee, monitor, and test trading activities to ensure funds are in compliance. To identify violations in a timely manner, administrators must test and analyze exceptions on a daily basis. They are also responsible for retaining testing records and for reporting findings to appropriate entities, as required.

The Confluence whitepaper provides fund administrators with guidelines for implementing an effective post-trade compliance program that will meet the increased demand for more frequent testing, scalability and control. To obtain a free copy of “Seven Rules of Thumb for Post-Trade Compliance: What Fund Administrators Need to Know,” please visit http://www.confluence.com/PTC-7RulesofThumb.

About Confluence

Founded in 1991, Confluence is the global investment management industry’s leading provider of automated data management solutions. Confluence helps investment management companies gain unprecedented control by automating every step of the fund administration process—including the collection, creation, confirmation, and delivery of investment product data while maintaining control of the process. Results are lower costs, reduced risk, decreased reporting turnaround times, and the scalability to automate more processes without additional resources. Confluence’s solutions are used by 40 percent of the leading global investment managers, and more than 60 percent of U.S. mutual funds. Unity™, the Confluence platform, addresses a wide range of problems from performance measurement to customized reporting for a full array of domestic and international managed investment products, including mutual funds, funds of funds, collective funds, separate accounts, and variable products, as well as hedge funds and other alternative investments. Major fund companies such as Evergreen and Merrill Lynch, and service providers like PFPC and Bank of New York rely on Confluence. Confluence, headquartered in Pittsburgh, PA, serves the international fund industry with key locations in London and Luxembourg.