Collaboration gives broker-dealers and their advisers access to an automated direct-to-fund solution
Laser App, a leading electronic forms provider, and DST Systems have announced a collaborative initiative to provide an electronic process for submitting new accounts directly to mutual fund and REIT companies. DST developed a new account establishment Web service, PathwayDirectSM, to facilitate transferring new account data and images directly to a product company’s record-keeping system, while Laser App will be providing the technology to allow its customers to collect and submit account data electronically.
An electronic direct-to-fund process can benefit the broker-dealer, back office and product manufacturer. Advisers using Laser App can leverage their CRM system to produce a clean application that helps reduce not-in-good-order applications (NIGOs). Additionally, advisers can realize significant time savings in establishing new accounts (from days to hours) and therefore, a quicker turn-around for commissions and fee payouts.
“Our mutual goal is to facilitate straight through processing,” said Robert Powell, vice president of sales & marketing at Laser App. “In order to achieve adoption, every party involved needs to benefit. Financial advisors receive the ease of working with a familiar system, broker-dealers have a seamless review process, and fund companies receive the data electronically to complete the transaction. All parties benefit by not having to rekey data or mail paperwork which in today’s process is both expensive and time-consuming.”
The process leverages the same Laser App experience that its customers currently rely upon for up-to-date, legible, and complete forms that use data from popular CRM systems. Laser App also integrates with popular industry e-signature providers and this solution is compatible with e-signatures. Broker-dealers not only reduce processing time and expenses, but they do so without incurring additional charges or expense as Laser App provides this additional functionality at no extra charge. The immediate return of the account number and the ability to use the actual account data for input into other back-office systems is invaluable to broker-dealers. Management companies can automatically scale business to account activity, reduce processing time by eliminating manual procedures, and reduce inquiries by home offices and advisers.
DST offers the broker-dealer the ability to perform its suitability review through the DST Vision HomeOffice® application. The broker-dealer reviews both the application data and the new account images, including the broker-dealer’s suitability form. Once approved, the application is sent via PathwayDirect to the participating management company and a new account, including the account number, is confirmed to the broker-dealer in seconds.