|Account opening||Account opening online or via API includes data validations that can virtually eliminate Not In Good Order ("NIGO") due to paperwork issues.|
Only one new account application is required to open an account that can hold each fund family. The form is available online and so is always current.
Similarly, account maintenance is largely online. Any maintenance requiring a form can be accomplished across fund families with one online form that is available and current.
|Paperwork can be lengthy, complicated, and likely includes many sections that do not apply to a mutual fund only investor.
|Suitability analysis||Firms specify compliance and suitability rules that are then checked in an automated fashion upon account opening. Exceptions can either be ‘hard stopped’ or routed for principal review.||Similar to FundKeeper, automated compliance and suitability is performed.
|Data aggregation||All position and activity data for FundKeeper accounts is available daily in a single feed. |
All data conventions, such as transaction codes, are consistent across fund families greatly minimizing scrubbing requirements or data translation errors.
All data is available to the firm for reporting and analysis purposes.
|Firms can view all of the mutual fund positions at the custodian; however, access to this data for other business reasons such as sales reporting or commissions may not be as straightforward as firms would like.
|Fees and revenues||FundKeeper has no transaction, statement, inactivity or other mandatory investor-level fees.|
Given that the mutual fund company no longer needs to perform shareholder servicing, firms may receive a share of servicing fees. In that way, FundKeeper offers the potential to change shareholder servicing from a cost center into a new revenue stream.
|Investors may be subject to a myriad of fees including transaction fees, costly IRA fees, transfer fees, statement fees etc.
Firms may (but in many cases do not) share in fund servicing fees received by the clearing firm.
|Rep departures||Single account changes or global rep-to-rep changes can be completed once, implementing the change across fund families.||Like FundKeeper, single account and global rep changes can be done once across fund families.
|Rep compensation||All commission data for FundKeeper accounts is available in a single feed with daily new transactions and at commission payment time.||Conventional brokerage systems acts similar to FundKeeper.
|The rep’s perspective||The FundKeeper mutual fund offering is branded for the broker dealer, with the marquee fund names as holdings. Direct marketing communication from the fund to the shareowner is eliminated.|
Account opening, transaction and funding is online and real time. A new account can be opened and a transaction made on the same day.
Prospectus delivery is automated. Rights of Accumulation ("ROA") calculations for FundKeeper positions and any held away positions known by FundKeeper is also automated.
Account changes can be made on line by the rep and, optionally, by the investor. Account changes such as address are affected across fund families with a single change.
Commission information on new trades is available back to the firm on the day following trade date.
|Explaining the discrete mutual fund fees may be uncomfortable and could make smaller or mutual fund only accounts not ideal to open as a conventional brokerage account.
|FundKeeper provides a single statement, branded for the broker-dealer firm, consistently displaying holdings across fund families. Statements can be delivered electronically, by mail or both. A single 1099 across fund families is also produced. |
The statements are consistent with mutual fund, rather than conventional brokerage statements, simple and easy to understand for mutual fund investors.
There is no need to maintain and reconcile a separate data set to combine data across fund families for reporting for FundKeeper accounts.
|Investors may experience brokerage presentation of mutual fund data as overly complicated and confusing—such as movement to and from a cash position and cost information about reinvested dividends.
|Account access||Access to the broker-dealer branded FundKeeper website makes available inquiry, transaction and account maintenance across fund families for reps and investors.||Investors with only mutual funds may experience brokerage self-service options as overly complicated—often resulting in additional calls.
The rep or rep’s assistant may end up taking primary responsibility for account updates.
|IRA accounts||A single IRA fee for each Tax Identification Number ("TIN") across fund families is supported. The BD firm can provide input into the amount of the fee.||Investors may pay excessive custodial fees compared to other options available for mutual fund-only investors, even if these investors limit their accounts to a single fund family.
|Client interactions||All fund family positions are serviced at a single point.||Reps may also need to field questions regarding account fees; for example, conventional brokerage providers may apply fees for small accounts, transfers and delivering paper statements.