Citi Establishes Service to Support New SEC Regulations for Mutual Funds

Citi has established a service for clients facing the SEC’s Rule changes affecting the U.S. mutual fund industry later this year. The SEC’s sweeping reporting modernization and liquidity risk management rules place an added operational burden on asset managers. Compliance with the rules requires additional market data, analytics and new reporting infrastructure.

The upcoming rule changes will have a dramatic impact on mutual funds as they will substantially increase automation, data collection and reporting requirements. Regulators and investors will have a level of visibility into mutual funds never before obtained.

Citi has partnered with MSCI and Confluence to help clients satisfy the SEC’s reporting modernization and liquidity risk management rules. This collaboration will result in an efficient and effective model that will assist Citi’s clients in meeting the new requirements.

“We look forward to helping our clients meet the rigorous demands of the SEC’s new mutual fund regulations. Together with MSCI and Confluence, we will create a set of user-friendly services that will help mutual fund managers navigate this complexity with transparency and control,” said Jay Martin, Head of North American Custody and Fund Services, at Citi.

“Asset managers are making their final decision on what solutions to implement as the SEC compliance deadline approaches. MSCI seeks to help them establish prudent liquidity risk management practices and an efficient N-PORT reporting solution,” said Jorge Mina, Head of MSCI Analytics. “We are very pleased to have been selected by Citi to support their plans to comply with the new regulatory requirements.”

Citi’s clients will experience a streamlined service designed to assist clients in complying with the SEC’s new requirements. MSCI will optimize the delivery of its data and risk and liquidity analytics for easier integration into Confluence’s Unity NXT® Regulatory Reporting solution. These analytics include the calculation of market risk sensitivities at a portfolio and position level, and the classification of funds’ investments into liquidity buckets, as outlined in SEC Rule 22e-4. Citi’s clients will receive easy and efficient access to the data and analytics they can leverage to comply with the SEC’s Form N-PORT requirements.

“The depth of data that Citi Fund Services has already consolidated on the Confluence platform during our 20-year partnership will provide a strong basis for the sharing and reuse of data required by SEC Modernization,” said Todd Moyer, Chief Operating Officer at Confluence. “Reusability of data is the cornerstone of regulatory reporting. With the Unity NXT® Regulatory Reporting platform, Citi can leverage a single, validated regulatory data set that can be reused across the entire enterprise rather than having to exchange multiple data files to meet multiple filing obligations.”