1. Go Small or Go Home: Rethinking Ballooning Data
a.k.a. The Great Data Manure Crisis of 2017
Rob Dearman, Bob Gager, Jamie Taylor

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9. Industry Infrastructure
In support of the domestic and global financial markets, DTCC processes over 100 million transactions every day.
$1.503 quadrillion of securities transactions settled in 2016
14.1 billion insurance transactions total in 2016
$5.2 trillion settled in mutual fund FundServ transactions
$92.8 billion settled in I&RS transactions
#IRIOpsTech

10. What’s the Problem? #IRIOpsTech Data File Creation Data File Movement
File Size – not enough time to create and send
Numerous Legacy Administration Systems
Limited ability to support “optional” data
Data File Movement
Batch versus real-time
Pass-through versus repository
Required versus optional fields
Data File Receiver
Too much or too little data
Data Conformity - data not “apples to apples” from carrier to carrier
Not receiving “optional” data
#IRIOpsTech

11. Is It Really Optional Anymore?
DTCC Positions (POV) File
DTCC Financial Activity Reporting
(FAR) File
171 total data elements
38 Required (22%)
32 Optional/Conditional (18%)
101 Optional (60%)
139 total data elements
41 Required (29%)
40 Optional/Conditional (29%)
58 Optional (40%)
#IRIOpsTech

12. So What’s The Answer?
#IRIOpsTech

13. The Increasing Expectations
Processing Category
Mutual Fund
Variable Annuity
FINRA License 6/7/63 with continuing education
FINRA License 6/7/63 with continuing education
Life Insurance License per state with NAIC required 4 hour continuing education
Insurance carrier appointment process per state per carrier with sponsor-specific requirements 1
Licensing and Registration
Requirements
New account form
Order memo/suitability & disclosure form
New account form
Order memo/suitability & disclosure form
Insurance disclosure
VA specific suitability data for FINRA 2330 and NAIC
VA 1035 exchange comparison 2
Broker/Dealer Required Paperwork
Application (4 pages)
Prospectus (44 pages)
Application (12 pages)
Prospectus (806 pages)
Carrier illustration 3
Product Manufacturer Required Paperwork

14. The Increasing Expectations
Processing Category
Mutual Fund
Variable Annuity
Efficient fund investment process (same day settlement if before 4pm)
Copy goes to OSJ manager
Fund Investment awaiting 7 day 2330 process
FINRA Rule 2330 requires compliance approval prior to funds being invested
Compliance approval must occur within 7 days or paperwork needs to be restarted 4
Broker Dealer
Compliance Approval
Product manufacturer reviews application and conducts additional suitability review
Additional documentation may be required based on additional review and NIGO processing
Carrier to Carrier 1035 Exchange process (days or weeks to complete)
Funds Invested
Funds Invested
Confirmation sent to consumer 5
Product Manufacturer
Processing
Electronic transactions and fund account changes
Manual transactions and policy changes
Additional BD compliance pre-reviews on many policy changes
Additional Carrier NIGO review on many policy changes 6
Post Investment Servicing

15. The Hassle Factor Total Pages per Client Packet
Number of Required Data Elements
Total Pages per Client Packet
Number of Required Forms
Average Days to Process (after IGO)
Source: National Planning Holdings Operational Processing Study, (American Funds vs. Perspective VA, IRA, $100k qualified client)

16. The Advisory Baseline – Table Stakes
Product Research
Proposal, SIS, IPS (not to be confused with an app or illustration)
Model Management – asset allocation builder
Trading and Rebalancing
Billing Administration
Data Reconciliation
Performance Reporing (online)
QPR Generation

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