IMs and sponsors are expected to be able to handle growing account volumes without increased cost, and lower their operational risk
UBS Financial Services, a sponsoring broker/dealer of managed accounts in the US, is preparing to launch a test of Depository Trust & Clearing Corporation’s Managed Accounts Service (MAS) and the recently introduced MAS Portal, with several investment managers (IMs).
Reportedly, MAS operates as a central communications infrastructure, allowing IMs, program sponsors and service providers to electronically exchange information throughout the life of a managed account through a single link. By eliminating redundant and expensive proprietary connections, the economics of the product are immediately improved.
It has been reported that IMs, using the Web-based MAS Portal, can immediately begin to realize the benefits of standards-based messaging provided by the MAS. Both IMs and sponsors are expected to be able to handle growing account volumes without increased cost, invest customers’ funds more quickly, and lower their operational risk.
Marianne Leone, executive director, said: “One of the biggest issues for an investment manager is that every broker/dealer they work with has their own system, or their own way of doing business, so obtaining information on accounts is difficult and lengthy. Standardizing the process will be an incredible benefit for all participants and remove significant operational expenses.” UBS joined DTCC’s Managed Accounts Service last October.
Ann Bergin, managing director and general manager, DTCC Wealth Management Services, said: “UBS’s commitment to launch this test is a welcome endorsement of a true industry solution that we’ve been working on for quite some time. We are optimistic that UBS’s adoption of the hub and the MAS Portal will help them and their investment manager partners conduct business much more effectively. As the efficiencies become tangible, I expect the momentum to build.”
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives.