BNY Mellon, the global leader in investment management and investment services, has further enhanced its global transfer agency offering with a new retrocession servicing capability that enables asset managers to process fees and commissions more efficiently.
Retrocessions are a key element in the provision of flexible compensation schemes. This latest enhancement aims to reduce operational and financial risk by eliminating the manual intervention typically required when terms and conditions are established between asset managers and contracting parties as part of distribution agreements.
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 standardisation.
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."
To facilitate these enhancements, BNY Mellon has partnered with abraxas GmbH, a leading software development company.