BNY Mellon has enhanced its global transfer agency offering with a new retrocession servicing capability for asset managers.
Retrocessions are a key element in the provision of flexible compensation schemes. This latest enhancement, designed to help asset managers process their fees and commissions more efficiently, eliminates the manual intervention typically required when terms and conditions are established between asset managers and contracting parties as part of distribution agreements.
Jon Willis, head of Transfer Agency for Europe, Middle East & Africa and Asia-Pacific, Asset Servicing at BNY Mellon, said: “We are looking to lower operational and financial risk for both transfer agents and asset managers. This new process is safer and more transparent, and reduces financial risk through embedded asset control. This new capability means we are well positioned to accommodate the requirements that will emerge under a single operating model, as well as the changes resulting from regulatory reforms like MIFID 2.”
Clients also benefit from more flexible data importing capabilities, which eliminate workarounds and manual entry, when it comes to the provision of data for trailer fee calculations, which historically have posed issues due to a lack of standardization. BNY Mellon has partnered with abraxas, a German software development company, to deliver the capabilities.