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To date, fund administrators and asset managers servicing or managing nearly 70 percent of all ’40 Act funds have selected Confluence’s Unity NXT™ Regulatory Reporting platform to prepare and file their Form N-PORT and Form N-CEN filings, key requirements in the SEC Reporting Modernization.
The SEC’s modernization effort focuses on collecting the data necessary to evaluate mutual funds’ impact on systemic risk and to inform the SEC’s examinations and rule making. Because systemic risk reporting is new to most mutual funds, the data management aspect of the rule has been a huge burden on fund firms, who have looked to proven technology providers to lessen the impact.
“Third-party fund administrators and asset managers servicing more than 8,300 of the approximately 12,000 mutual funds impacted by the SEC Modernization mandate are signed on to use Confluence. Those firms can now focus on the next phase of SEC Modernization readiness, organizing and integrating data already available in-house and selecting new content data providers,” said Tom Pfister, Global Head of Regulatory Reporting Solutions at Confluence. “The majority of the market has chosen Confluence for two reasons: first, our extensive experience with systemic risk filings, including Form CPO-PQR and Form N-MFP and others already impacting the alternative fund space; and second, our innovative platform-based approach that services the broadening scale of regulation rapidly and efficiently.”
Confluence has been preparing for SEC Modernization since early 2014, revamping our infrastructure to deal with systemic risk reporting, and evaluating the unique challenges presented by each component of the rule. This early preparation has uniquely positioned Confluence to minimize the operational impact of the new requirements to their clients.
Concurrent with clients’ data sourcing and management work is the first round of test filings. On September 11, the same day on which the SEC released the technical specifications to be used in the initial test filing window, Confluence successfully submitted a test filing. This initial test period runs through the end of December. Confluence will participate at multiple intervals and will continue to provide updates to their clients on findings and progress. Confluence will also participate in the second testing window available from March 1, 2018 to May 31, 2018.
Introduced by Confluence in May 2016, the Unity NXT Regulatory Reporting platform, powered by Synapse®, enables firms to address the challenges of data-intensive new requirements like Form N-PORT and Form N-CEN, which require a new approach that scales the massive data requirements and increased frequency of change of today’s regulatory environment.
