FE Fundinfo, a company specialising in fund information, technology and services, announced on Friday 8 December a new fee and distribution channel management service to be launched in early 2024. The service is aimed at aiding asset managers in managing sales commissions, including rebate, trailer fee and platform fee, during reconciliation and calculation, stated the . It is designed to alleviate administrative tasks associated with distribution agreements and counterparty due diligence.
In preparation for this launch, FE Fundinfo collaborated with various asset managers over the past six months in a pilot project. This project sought to understand the specific needs of asset managers with different fund ranges and operational processes, the company stated. The feedback from this collaboration contributed to the development of a modular and customisable service intended to improve operational efficiency and reduce costs for asset managers by leveraging economies of scale.
The service will be integrated into FE Fundinfo’s fund information hub, complemented by the recent of Adjuto. This integration aims to reduce the middle-office administrative load on asset managers, providing an end-to-end solution that offers effective fund distribution oversight at a lower cost through standardisation, digitalisation and automation.
Marina Corghenci, director of fee and distribution channel management at FE Fundinfo, discussed the growing complexities and regulatory challenges in distribution channels in the firm’s announcement, mentioning the difficulties in managing agreements, calculating rebates accurately and adhering to regulations, especially with manual processes and varied systems in fee management.
Steffen Ahlers, also a director of fee and distribution channel management at FE Fundinfo, noted the service’s ability to address these issues by reducing manual work and introducing a unified platform, aiming to streamline processes, save time and enhance efficiency. He acknowledged the contribution of asset managers in the pilot programme, whose feedback was vital in refining the service to effectively tackle fee management, distribution channel management and counterparty due diligence challenges.