January 2, 2019  |  VIDEO BLOG POST |

Envision was recently recognized for innovation in mutual fund distribution for its FundKeeper product, which provides financial intermediaries with a new alternative for processing and managing customer mutual funds.

Ignites reporter Jackie Noblett sat down with Envision’s Brian Jones at the NICSA General Membership Meeting to dig deeper into FundKeeper….and to understand why it’s truly innovative.

The following text is a transcript of a portion of a speaker’s presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Ignites or any other group.

Source: Ignites @ Nicsa, Oct. 11, 2018

JACKIE NOBLETT, SENIOR REPORTER, IGNITES: Hi, I’m Jackie Noblett. And I’m here with Brian Jones of Envision Financial Systems. And we’re at the Nicsa General Membership Meeting in Boston.

So Envision is winning an award for your FundKeeper sub-accounting platform. And obviously, shareholder recordkeeping, sub-accounting, omnibus accounting, gets a lot of attention. Can you kind of explain how this platform came about?

BRIAN JONES, EXECUTIVE VP, ENVISION FINANCIAL SYSTEMS: A few years back, we took a look at the marketplace and what was happening with sub-accounting. And working with US Bank global fund services, we identified an opportunity where there are certain types of accounts which go direct to the fund company that perhaps weren’t being dealt with in the most efficient manner.

So we put our heads together and launched the FundKeeper, platform, which is really meant to address the inefficiencies in the mutual fund processing between the financial intermediary — in this particular case, primarily independent broker-dealers — and the funds distributors themselves.

JACKIE NOBLETT: In terms of sub-accounting from the mutual fund provider’s perspective —

BRIAN JONES: It helps the fund itself, because it creates a much more efficient distribution channel for them. Funds are always fighting for distribution. In this particular model, it creates a much more efficient process between that broker-dealer firm, the rep, and the fund company itself.

The other thing that it does is, many of these accounts, because of the lack of oversight or the difficulty with oversight that some of the brokers have, a number of these positions run the risk of being abandoned. The broker-dealer looks at those and says, well, if I don’t have the proper oversight, do I really want them? And they contemplate resigning as the broker-dealer.

And then what you do is, you leave the fund company with a small-balance orphaned account. And now the distributor has to take on that fiduciary risk.

JACKIE NOBLETT: Being on both the TA recordkeeping side and on the sub-accounting side, as Omnibus has kind of become ubiquitous, and there’s all this focus on fiduciary responsibility and cost and compliance in these relationships, how is this all affecting the underlying technology?

BRIAN JONES: Over these past eight, 10 years, maybe even more, we’ve seen a lot more regulatory and compliance regulation heading in our way, both on the broker-dealer side and on the fund way. So the technology has to be nimble enough to adapt to that technology, to be able to address all of those concerns, in a much more efficient way than it has in the past.

JACKIE NOBLETT: The data has to be available to audit and to show a paper trail, essentially.

BRIAN JONES: Absolutely. And things like clean shares. Clean shares are difficult for the funds. The brokers now have an opportunity to select what kind of fee structure they want to put around those. So the sub-account platform — our FundKeeper platform — has to be able to adapt. It has to be able to deal with custom schedules broker by broker.

JACKIE NOBLETT: Well, it sounds like you’ve been doing a lot of work. Thanks for explaining it to me.

BRIAN JONES: Appreciate it. Thanks for your time.

U.S. Bank Global Fund Services is a wholly owned subsidiary of U.S. Bank, N. A.

Envision Financial Systems, U.S. Bank Global Fund Services and its affiliate Quasar Distributors, LLC together offer FundKeeper.

Investment products and services are:
NOT A DEPOSIT • NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Quasar Distributors, LLC, Member FINRASIPC. To check the background of this firm, visit BrokerCheck by FINRA

U.S. Bank does not guarantee the products, services or performance of its affiliates and third party providers.