Semi-Automated Reconciliations Processes
The client's auditor had recommended that the client automated its existing monthly custody reconciliations to fully meet regulatory requirements. The client's semi-automated reconciliations processes, while largely effective, were not reconciling all the stock every month. The existing processes were not scalable as the business was growing organically and by acquisition. The client was keen to future proof his processes against regulatory changes.
Implementing AutoRek's Reconciliation Tool
Using AutoRek's reconciliation tool, the client matched 90%-95% of the transactions automatically. The client was able to move from monthly to daily reconciliations due to the level of efficiency delivered by AutoRek.
Initially all that was required was a solution to reconcile the clients' holdings to its global custodians – (CREST/Euroclear and Bank of New York) on a monthly basis. However, once AutoRek was up and running and the client seen it in operation they decided to use it to reconcile:
- Multi-currency bank accounts
- Records between different modules in its system
- Accounts holding to the correct tax residence and designated pooled holding accounts
- Dividends and corporate actions
Greater Control Over the Network of Branches
The cumulative effect was to wear together the disparate strands of the firm's custody and settlement systems into integrated and robust, settlement and custody modules. Flexible reporting and data management tools allowed the client to exert greater control over its network of branches.
Tick-back work was automated, freeing reconcilers to resolve breaks. The client was able to move to daily reconciliations as breaks were more easily resolved, because they are identified early. All regulatory deadlines were easily achieved.
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