New York-based buy- and sell-side technology vendor Advanced Financial Applications (AFA) is offering a soft dollar reporting and commission management application called IMPACT Pro SD. AFA claims the new tool will enable broker-dealers to furnish institutional clients with real time access to detailed reports of commission activity. It adds that fund managers as well as broker-dealers can use the reports as the basis for detailed information on the handling of brokerage commissions to auditors and regulators. The offering enables broker-dealers to be fully compliant with the new SEC guidelines on soft dollar commissions.
The soft dollar service is available on an ASP basis. It offers a detailed account of a fund manager’s use of a client’s brokerage commissions; presentation of information for the client, broker and other parties involved in the relationship for a clear understanding of the manager’s brokerage practices; disclosure and record keeping, enabling clients to have a detailed account of the brokerage activities; an option for fund managers to provide descriptions of the products or services they have received through commissions generated from a client’s account; information from the broker-dealers to fund advisors and boards to facilitate disclosure to investors; and the ability to meet compliance demands such as full disclosure. IMPACT ProSD will also provide concise detailed reports which demonstrate how every penny is spent and what research product of brokerage services they are getting in return.
“2007 is a critical year for the industry, and AFA will play an important role in enabling both the buy and sell sides to grow by leveraging our expertise and technology," says Patrick Lynch, CEO of AFA. "This latest offering is the second in a series of moves that will enable our clients to achieve their goals with comprehensive and cost-effective tools, all delivered on one platform. As clients are experiencing increasing costs related to compliance, we have integrated a reporting mechanism that shifts the burden away from clients so they can focus on their business. We look forward to continuing to offer such need-based solutions.”