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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 • • • • New expectations New practices New rules and requirements And new opportunities Today’s conversation: • Current situation • Solution sets from Broadridge © 2016 | 1 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. © 2016 | 2 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. © 2016 | 3 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.” © 2016 | 4 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 © 2016 | 5 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 © 2016 | 6 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) © 2016 | 7 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 © 2016 | 8 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 – – – – – 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 © 2016 | 9 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 © 2016 | 10 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 © 2016 | 11 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. © 2016 | 12 No part of this document may be distributed, reproduced or posted without the express written permission of Broadridge Financial Solutions, Inc. ©2016 Broadridge Financial Solutions, Inc. All rights reserved. Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc.