Citi has established a service for clients facing the US Securities and Exchange Commission’s (SEC) rule changes affecting the US mutual fund industry later this year.
Compliance with the rule changes, SEC Rule 22e-4, requires additional market data, analytics and new reporting infrastructure.
According to Citi, the upcoming rule changes will have a dramatic impact on mutual funds as they will substantially increase automation, data collection and reporting requirements.
In response, Citi has partnered with MSCI and Confluence to help clients satisfy the SEC’s reporting modernisation and liquidity risk management rules.
MSCI will optimise the delivery of its data and risk and liquidity analytics to create 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’s new ruling.
Jay Martin, head of North American custody and fund services, at Citi, said: “We look forward to helping our clients meet the rigorous demands of the SEC’s new mutual fund regulations.”
He added: “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.”
Jorge Mina, head of MSCI Analytics, commented: “Asset managers are making their final decision on what solutions to implement as the SEC compliance deadline approaches.”
He added: “MSCI seeks to help them establish prudent liquidity risk management practices and an efficient N-PORT reporting solution. We are very pleased to have been selected by Citi to support their plans to comply with the new regulatory requirements.”
.jpg)