Redi2 unveils fee billing reconciliation tool

Source: Redi2 Technologies

Redi2 Technologies, a leading provider of sophisticated yet simple-to-use fee billing solutions for the global financial services industry, today announced general availability of Redi2 Recon, a Redi2 Revenue Manager add-on module that automates fee reconciliation for managed accounts and institutional asset managers.

Redi2 Recon helps eliminate under- and over-payments between financial services providers amid unprecedented industry and regulatory scrutiny of fees charged on behalf of intermediaries and end investors. Redi2 Recon helps firms strengthen their compliance and risk management programs by automating fee reconciliation among institutional asset managers, sub-advisors, self-billing clients, custodians and, for managed accounts, investment managers and sponsor firms. The module also reconciles fees across sleeves for the growing volume of unified managed accounts (UMAs).

"The rapid rise of sub-advisory and managed accounts, and the need for greater transparency have driven demand for a more robust tool to verify fee payments between investment firms and intermediaries," said Redi2 CEO Seth Johnson. "Clients know they can rely on our deep expertise in fee billing automation to increase confidence in the quality of service they provide."

One of the world's largest managed accounts distributors implemented Redi2 Recon in March 2009 to reconcile fee payments between its money manager clients and their sponsor firms. A global institutional asset manager has also gone live with Redi2 Recon for reconciling fees with its sub-advisors as well as the firm's self-billing institutional clients.

Among its capabilities, Redi2 Recon:

  • Identifies and helps proactively resolve fee exceptions at the source
  • Features robust workflow, business intelligence and messaging
  • Facilitates messaging to users as thresholds are exceeded
  • Monitors high-exposure fee billing variations at aggregated or account-by-account level
  • Tracks aggregate level and account level reconciliation status for user review and analysis

Redi2 Recon automates manual fee reconciliation processes based on client-defined business rules and tolerance levels. With the click of a button, users can view both sets of calculated fees and their associated variance, accessing the application in-house or via an online portal. If an aggregate level validation triggers an exception at a roll-up level, users can drill down to the account level and examine the fee data to identify and address any discrepancies.

Redi2 Recon supports fee billing messaging standards being developed by the Money Management Institute (MMI) in conjunction with industry participants to ease the exchange of data between managed account sponsors and investment managers. Redi2 CEO Seth Johnson is co-chair of MMI's fee billing standards sub-committee.

Redi2 Recon is available as an add-on module to Redi2 Revenue Manager(TM), Redi2's award-winning fee billing and revenue management software that automates account setup and termination, complex fee calculation, invoice generation, revenue accounting and reconciliation, as well as robust billing and accrual adjustments and reversals.

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