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January 25, 2017
It’s a whole new world
Turn DOL compliance into a competitive advantage
Addressing key issues for the new fiduciary world
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New expectations
New practices
New rules and requirements
And new opportunities
Today’s conversation:
• Current situation
• Solution sets from Broadridge
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Broadridge: One foundation serving the industry
Broadridge provides the systems and
support that enable institutions and advisors
to follow the essence of the fiduciary rule:
Be loyal to investors and put their
interests first at all times.
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We’ll help you solve the “mystery” of DOL compliance
Flexible solutions – customized for you, providing answers
Broadridge has a history of anticipating regulatory changes
and a reputation of being first to market with solutions.
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Rely on us to help you meet new fiduciary obligations
We understand that your priority is to your investors. Under the DOL guidelines, loyalty
to your investors comes first. Turn this loyalty into action – with the help of Broadridge’s
fiduciary “architecture.”
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Validate, Communicate, Comply:
Putting our fiduciary architecture to work for clients
Broadridge: Your single
source for up-to-date data,
workflow and customer
experience solutions.
DOL Fiduciary Solutions
DOL Customer Communications
DOL Compliance Management
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Offering solution sets
Ensure advisor recommendations meet “best interest” standards
Institutions need
standardized processes
and tools to…
• ensure accurate, timely
disclosure
• help advisors recommend
suitable investments
Advisors need tools and
efficient systems to…
• easily access prospectus
disclosure information
• evaluate suitable
funds and share classes
• compare funds
and ETFs
• compare and
contrast investment
options and fees
• manage risk and protect
against future litigation
• capture signature and
archive recommendations
Investors need…
• the most current
disclosure information
• access to complete
documentation of
investment expenses,
performance and fees
• a clear understanding
of investment
recommendations
• confidence in suitability
of recommendations
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Ensure “best interest” standards
DOL Fiduciary Solution Set
4 powerful screening tools add clarity to point-of-sale transactions
• FundPOINT Data View – Instantly access mutual fund and ETF rules
and prospectus information, updated daily from EDGAR
Industry’s first
100% EDGAR-sourced
data solution for
mutual funds
• FundPOINT Share Class Suitability – Perform real-time share class
suitability analysis, capture signature and archive recommendations
• FundPOINT Fund Suitability – Compare mutual funds and ETFs in
real-time to ensure best interests are disclosed and archived
• FundPOINT Rollover Review – Simplify 401(k) rollovers with
real-time recommendations, fee transparency, output and archival
Industry’s first tool
to help assess the
appropriate share
class for investors
Ensures funds and ETFs on your sell list are most suitable to recommend
• Leveraging Broadridge’s “scorecard ranking” fund evaluation service, firms can assess the
appropriateness of their fund lineup benchmarked against all U.S. Mutual Funds and ETFs
EDGAR-sourced data to pre-populate online forms and communications
• More than 400 data points for mutual funds and ETFs
• More than 140 data point for variable products (VA, VL, VUL)
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Offering solution sets
Deliver required disclosures and contracts – efficiently and cost-effectively
Institutions need an
enterprise system to…
Advisors need a point-ofsale system that…
• manage, personalize,
send, track and archive
the right disclosures –
at the right time
• ensures proper
disclosures, notifications
and other required
communications are sent
quickly in response to
investor requests
• send large amounts of
documents (e.g., multiple
BICs to correct clients –
and archive the delivery)
• automatically archives all
advisor communications
in their original form
Investors need…
• notifications,
recommendations and
disclosures explaining that
their institution and
advisors acted with a
fiduciary standard of care
• assurance that all advice
offered is not conflicted,
and is made with the
investors’ best interest
at heart
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Create, deliver, archive
DOL Customer Communications Solution Set efficiently
delivers required disclosures and contracts
Create and deliver communications
• Data-driven platform for timely composition, delivery and version
control for:
– Fiduciary Letter-Notices / Best Interest Contract / Transactional Disclosures
Deliver complex, personalized, time-sensitive content: print and digital
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Point-of-Sale Disclosure / Website / On-Demand Disclosure
Statutory and Summary Prospectuses
Mutual Funds & ETFs
401(k) to IRA Rollovers
Variable Annuities
Respond quickly to ad hoc requests
Maintain website for investors to access all docs
Broadridge
communications
reach 75% of
North American
households.
We send more
than 4 billion
multi-channel
communications
on behalf of our
clients annually.
• Multi-channel delivery, postage savings, tracking management
and signature capture
Archive – secure, automated
• Secure document archival / Comprehensive report mining
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Offering solution sets
Continuously manage and mitigate risk
Institutions need
to know they can…
Advisors need
to know they have…
Investors need
to know…
• manage new compliance
risks
• systems in place that help
them avoid potential
conflicts
• their institution and
advisors will always act
in their best interests
• the right tools to ensure
their compensation
complies with DOL rules
• the fees they pay
are fair and all costs
are transparent
• achieve accuracy
and transparency in fees
and compensation
• continuously
monitor operations
to mitigate risk
• equalize payments
to advisors and minimize
conflicts of interest
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Monitor, mitigate risk
DOL Compliance Management Solution Set
Obtain data and controls to manage Day 1 and ongoing DOL compliance
Achieve accuracy and transparency in fees and compensation
with multiple solutions
• Calculate, reconcile, allocate, and process payments to advisors
and fees charged to clients
• Implement new compensation structures for advisors based
on compliance rules (e.g., “levelize” payments)
• Ensure payments don’t create conflicts of interest for advisors
• Mutual fund trade processing and custody
• Level compensation service
Broadridge has
SEC-approved
retention
and archival
solutions.
Aggregate data to drive compliance
• Aggregate and reconcile account holdings data across internal
and external systems, including held away assets
• Leverage existing data feeds with hundreds of financial institutions
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Since 1962, Broadridge
has grown to be a valuable partner
for the world’s leading financial institutions
and corporate issuers — handling millions
of trades involving trillions of dollars every day
and more than one billion investor
communications per year.
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Financial Solutions, Inc.