Northern Trust fine tunes mutual fund services

Northern Trust has enhanced its reconciliation and payment processing in response to an increased regulatory focus on mutual funds fee arrangements.

Implemented using Broadridge’s Revport tool, the wealth management services provider is aiming to streamline specific operations including invoice validation and reporting options.

The move comes following an increased focus and tighter controls around the reconciliation and payment of distribution and servicing fees.

Previously broker dealers and other financial intermediaries have sought omnibus recordkeeping arrangements, with a single house account held on the transfer agent’s books, and the underlying subaccounting being performed by the intermediary.

Certain aspects of the new capabilities include increased automation of payments, improved reconciliation involving the ability to compare expected amounts to actual invoices as well as enhanced reporting including summarised payments and fee arrangements.

“As the SEC has increased its focus on mutual fund fee arrangements, Northern Trust has developed capabilities that help our fund clients tighten controls around their oversight process,” said Dan Houlihan, head of global fund services in North America at Northern Trust.

“We view this as a natural extension of our dealer servicing support for U.S. mutual funds.”