Fundamental focus: overcoming fund administration challenges

Let’s acknowledge a fact. Most rational people are looking for ways to make their life easier. Less duplication, fewer forms, cut-out the red tape. More time for things we like or need to do. Make life easier – it’s one of our guiding principles at Puritas.

Let’s consider a second fact. Most fund administration systems are not devised to make the lives of users easier. In an industry so tightly bound by compliance, the overriding focus is always on following the rules.

To us, this is a good start – but it doesn’t finish there. Let’s really think about users, clients and customers too.

The key to making everyone’s life easier is more automation – wherever possible.

No one can deny that less manual processing should result in greater efficiencies and lower error rates. The challenge faced by many fund administrators is replacing the manual elements of their system with automated processes. While also remaining within compliance rules.

Puritas has spent time understanding this need, and the complexity involved to improve. It’s about focusing on the fundamentals in many ways – rather than just forging ahead on creaky foundations. This is the approach we’ve taken, and continue to take, with our PureFunds fund administration system.    

Administration challenge

The basics of fund administration are straightforward enough. Fund managers offer clients the opportunity to invest in their product. Clients apply to make a purchase, provide information needed for compliance checks. Process the deal, take payment, issue contract notes. Update the client, manage distributions.

Here’s the catch. Straightforward enough, but administration heavy – which impacts on system users, their clients and customers whose clunky experience leaves them dissatisfied.

Puritas has set itself the challenge of eliminating these impacts. And it’s a personal thing. Through previous roles in fund administration organisations, our team members have first hand knowledge of why things need to improve. This, coupled with innovative design and programming skills, have led to the development of PureFunds, and will help drive its future evolution.

Driving up STP

At the heart of our fund administration proposition lies a commitment to increase STP, or straight-through processing, to its highest possible level. Our determination is to raise the STP percentage – wherever possible, or practical, we seek to eliminate manual processing. Less human involvement leads to less risk and less errors.

PureFunds receives a client’s originating order, enforces the dealing rules, applies the price, validates transaction details, creates and dispatches confirmation documents and contract notes. It integrates with major global fund networks, including EMX, Calastone, Vestima, Fundsettle, and key payment systems such as Swift. And we’re presently enhancing to include API interface and integration with applications such as the Microsoft Power Platform.

The system can also manage regular subscriptions and redemptions for clients – no administration involved. Automated document management, production and distribution eliminates human intervention.

We’re focused on ensuring PureFunds is the most comprehensive product possible. Structured, simple, streamlined to drive up STP and drive down wasted effort.

Onboarding options and looking towards the future

Returning to the idea of making life easier – can more be done to drive up STP? It’s a question every fund administrator should be asking.

Client onboarding, with all its necessary customer due diligence, can involve more heavy administrative processing and introduce more risk through errors. With this in mind, we’ve taken the same fundamental approach with our complementary PureClient product.

Again, the focus is automation – multi-jurisdictional CDD and AML, automated risk management, automated account setup from PDF. And there’s more in the pipeline through in-house innovation and specialist partnerships.

Can we make lives still easier? Well, there’s this AI thing to think about. . .

Paul Madden is always willing to discuss the Puritas PureFunds fund administration solution – contact paul.madden@puritas.co.uk to find out more.