The new service was developed in response to the recent findings of regulatory sweep examinations jointly conducted by the US Securities and Exchange Commission (SEC), National Association of Securities Dealers (NASD) and the New York Stock Exchange (NYSE) to determine if firms selling front-end load mutual fund shares were properly applying breakpoint discounts for eligible customers (See SEC Looking At Breakpoints ), according to a news release.
To make this determination, BISYS seeks to assist firms in assessing their compliance with all mutual fund-related regulatory requirements. BISYS’ regulatory consultants will review:
- written policies and procedures for the supervision of mutual fund sales practices to determine whether procedures are adequate
- trade processing methodology, operating systems, transfer agent, and third-party service provider
- customer transactions, as required by the NASD, to determine whether compliance programs have been implemented in accordance with established procedures, whether systems and operational controls are functioning properly, and whether customers are benefiting from breakpoints.
« Ex-Pan Am Worker Group Asks for Favorable PBGC Case Ruling