Source: BNY Securities
BNY Securities Group, The Bank of New York's institutional agency brokerage, clearing and financial services outsourcing sector, has enhanced its commission management portal to improve commission reporting transparency and assist clients in managing their increasing regulatory obligations.
Through InterComm(SM), its INTERactive COMMission management portal, BNY Securities Group now offers a daily account snapshot that provides a day-to-day, year-to-date breakdown of trading commissions generated for the purchase of independent research. It has also further automated a wide range of tasks revolving around the invoice processing, payment, and vendor management functions.
The enhanced InterComm portal also allows clients to access their current monthly commission statements as well as an archive of previous statements and client reports. InterComm clients can access invoices over the Internet, simplify invoice tracking and automate the workflow process. The InterComm portal provides easy access to current regulatory releases, "best practice guides" and other information. An online contracts module, designed to help clients simplify the filing, tracking, and reporting tasks necessary to support increasing disclosure and audit requirements, is expected to become available by year-end.
Joseph M. Velli, senior executive vice president of The Bank of New York and Head of BNY Securities Group, said, "The Bank has taken a leadership position in support of the use of commissions for independent research or 'third-party soft dollars' as they are commonly referred to. We believe that the use of commissions to purchase research offers substantial benefits to investors and is an integral part of the investment process, and that more complete disclosure of how commissions are utilized should be provided to fund managers and investors. We expect that regulators, as evidenced by the recently enacted Global Research Analyst Settlement, will continue to encourage the use of independent research." Mr. Velli added, "Our enhanced InterComm portal sets the standard for the kind of commission cost breakdown that will help asset managers deal with this anticipated disclosure."
Velli noted that BNY Securities Group has observed that clients continue to embrace independent research and to use commissions to pay for it. In fact, Velli anticipates that additional disclosure of all commissions, not just third-party commissions, will lead to a greater use and allocation of commissions to obtain independent research. "Utilizing commissions to obtain third-party independent research has always been a transparent process, but now our portal raises the bar in terms of timeliness and precision," stated Velli.