FAS Conference. September 8 11, 2016

Transcription

1 FAS Conference September 8 11, 2016

2 Evolving Financial Services Industry Creates New Opportunities Three key notable trends Mutualization of technology and operations Increased regulatory pressure is negatively impacting profitability Leading firms are sharing processing functions with other firms to manage expenses and reduce risk Technology and operations play an essential role in helping firms improve the bottom line Digital communications E delivery of investor communications and internet platforms allow firms to lower costs, build stronger relationships, and gather customer intelligence Data and analytics Insights from customer and market data are driving new sources of revenue growth Broadridge is at the forefront of identifying and leveraging change in the financial services industry. Clients rely on Broadridge s insight and solutions to help them run their operations at optimal levels of scale and efficiency. 1

3 Industry Initiatives

4 CSA BUSINESS PLAN In July 2016, the Canadian Securities Administrators released its Three Year Business Plan for the period from 2016 to 2019 outlining 18 priorities with action plans in four areas: investor protection fair and efficient markets enforcement effectiveness information technology In pursuance of its investor protection mandate, the CSA is committed, over the next three year period, to the following priorities: Enhance Disclosure to Investors Complete rulemaking and implement requirement for point of sale disclosure and delivery regime for exchange traded funds (ETFs). Finalize and implement the CSA risk classification methodology for use in the Fund Facts document and the proposed ETF Facts document to identify the fund s risk level. Consider whether regulatory action is needed to address conflicts from embedded commissions Complete stakeholder consultations to determine whether embedded commissions in investment funds should be addressed to better align the interests of investment fund managers and dealers/representatives with those of the investors they serve, and implement a regulatory proposal as appropriate 3

5 CSA BUSINESS PLAN Enhance Advisor Client Relationship Complete public consultations to determine the extent of targeted reforms required to enhance current regulatory requirements in this area, and for some CSA members, decide whether to proceed with the development and introduction of a best interest standard for advisors. Measure impact of CRM2 and POS Reforms Conduct post implementation analysis of the impact of the Client Relationship Model Phase 2 and Point of Sale (POS) amendments on investors and industry. Improve Canadian Proxy Voting Infrastructure Finalize and publish industry protocols clarifying the roles and responsibilities of key entities and providing guidance on the kinds of operational processes that they should implement to support accurate, reliable and accountable meeting vote reconciliation. Monitor the implementation of improvements and measure their impact on the accuracy, reliability and accountability of meeting vote reconciliation to determine whether additional rules and policy guidance are required. Educate Investors Develop retail investor communication programs to optimize implementation of key CSA policy initiatives, including CRM2 and the new annual reports on costs and performance statements Pursue programs encouraging investors to confirm their advisor s registration and promoting the use of the CSA National Registration Search engine. 4

6 Industry and Regulatory Initiatives FundSERV v27 (June 2017) CDS ATON changes (monitoring) RESP GIC s T+2 CRA/MRQ Form & output changes Common Reporting Standards (GATCA) T1135 5

7 Industry and Regulatory Initiatives IIROC CRM2 Confirm Changes Completed July 2016 Performance & Fees/Charges January 2017 IIROC POS Stage 3 Mutual Funds Completed May 30, 2016 Exchange Traded Funds Upcoming Rule DTC T+2 6

8 Innovative Solutions

9 Broadridge Acquisitions creating new opportunities Anetics DOJIMA 4sight Comprehensive Securities Lending Solutions Derivatives clearing and connectivity platform Securities finance and collateral management solutions Liquid X (investment) Electronic exchange to trade corporate receivables DST Customer Communications DST Systems Inc. North American Customer Communications business Broadridge is at the forefront of identifying and leveraging change in the financial services industry. Clients rely on Broadridge s insight and solutions to help them run their operations at optimal levels of scale and efficiency. 8

10 Emerging Broadridge Solutions Foreign Exchange and Liquidity (FXL) a real time, front to back solution for FX, exchange traded futures & options, metals, interest rate derivatives and money market instruments. Derivatives Clearing an integrated solution exchanged traded and cleared (OTC) derivatives across asset classes providing connectivity to CCPs and middle office capabilities such as allocations, give in s and giveup s. Securities Financing and Collateral Management a front to back solution for securities lending, repo processing, synthetic financing, and enterprise wide collateral management lifecycle, from front office trading automation to back office clearance and settlement. Trade Revenue and Expense Management a centralized solution for trade expense calculations, invoice processing and validation to drive incremental saving and allow for accurate allocation of expenses using actual trade data. Reference Data a centralized solution for managing security terms and conditions across your entire enterprise with our enterprise data management platform. INFORM a web based account system that enables fast and efficient capture of new client details within the necessary forms, while at the same time autocompleting subsequent forms, and validating the data for signature capture (print and sign or e signature), and submission into a workflow for processing. MFDA Processing a full front, middle and back office solution for both integrated and independent MFDA dealers. Inlet, digital distribution channels provide investors/consumers choice for digital distributions. epost and cloud channels will be first options available for Canadian content. 9

11 Broadridge Client Onboarding Solutions inform An end to end back office agnostic client onboarding solution Modern web based interface that enables easy to use, accurate, and efficient client data capture Leverages a firm s existing form library E Signature Integration Workflow (Bridge Workflow) Rules based workflow engine, standalone to client onboarding or integrate with existing workflow Job function specific user entitlements E mail notifications Integration with 3 rd party verification systems Document Storage (PostEdge) Imaging and Workflow Solutions PostEdge document archival/retrieval Book of Record Integration Dataphile API access, BPS NAUPDT files Open Architecture, can make API calls XML/Flat Files Managed Services 10

12 Dataphile Advisor Web desktop 11

13 Inlet is a Robust Digital Network Inlet enables you to communicate with consumers through the digital channels they select Consumers select the channel they want to use Channels are connected to the network Digital Mailboxes Pony Express Productivity Apps Cloud Solutions Online Banking Inlet Distributes communications Manages preferences Digitizes the content Analyzes data Content Providers connect to the network once Investment Communications: Statements, Bills, Confirms, Regulatory, Notices, Letters, Banking Telco & Cable Healthcare Insurance Other Industries 12

14 Transforming Communications Converting communications from static PDF s to interactive two way communications improves the experience for the consumer while providing significant value to the brand Original Document Notification To the channel and device the investor chooses Communications Are now interactive and digital Transformed 13