Press Release - July 26, 2005
Media Contact:
Anne Hebard
Boston Financial Data Services
Phone: 617-483-3158
Fax: 617-483-5952
Email: ahebard@bostonfinancial.com
Jill Metzler
DST Systems, Inc.
1-816-843-9087
DST, Boston Financial Launch Compliance Program for Mutual Funds
Compliance+ sets the industry standard for providing mutual fund compliance support
KANSAS CITY, MO., July 26, 2004 – Mutual
fund clients of DST Systems and Boston Financial
Data Services required to comply with SEC Rule
38a-1 now have free access to Compliance+™,
a comprehensive, enterprise-wide compliance program.
Rule 38a-1 of the Investment Company Act of 1940
requires investment companies to adopt and implement
written policies and procedures to ensure compliance
with certain federal securities laws; review them
annually for adequacy and effectiveness; and designate
a chief compliance officer (CCO). The rule affects
functions performed by the fund’s service
providers, and includes provisions to promote
the independence of the CCO from the fund’s
management and its service providers.
CCOs of all U.S. mutual fund companies are expected
to have policies and procedures in place by October
5, 2004. Their policies and procedures must be
reviewed by an independent third party within
18 months of implementation.
Compliance+ provides fund companies a specific
methodology for meeting the requirements of this
rule. With Compliance+, newly appointed CCOs have
a resource to address, document and measure compliance
for transfer agent regulatory requirements.
Compliance+ consists of three key components.
It features a federal securities law matrix that
identifies federal statutes that are generally
applicable to mutual fund transfer agents. It
maps these laws to key business processes and
workflows such as anti-money laundering programs
and transaction processing. Finally, Compliance+
provides a “measurement dashboard”
that connects the business processes to key compliance
measures; these will be reported to clients on
a periodic basis.
“Compliance+ addresses the requirements
of this new rule from a holistic compliance nfrastructure,”
said Jeff Cook, director of regulatory compliance
for DST Systems. “It will supplement the
efforts of those clients who have been working
on their programs for awhile. For those who are
in the early stages of drafting their policies
and procedures – and those who have yet
to start – Compliance+ can be the template
from which they model and document their own procedures
and process flows.”
DST Systems, Inc. (NYSE: DST) provides sophisticated
information processing and computer software services
and products that help clients improve productivity,
increase efficiencies, and provide higher levels
of customer service. DST is organized domestically
and internationally into three operating segments:
Financial Services, Customer Management, and Output
Solutions. DST operates one of the most advanced
data centers in the world, which provides information-processing
services to support the products within each operating
segment. These products are further enhanced through
the integration of DST’s advanced technology
and e-commerce solutions.
Boston Financial Data Services is one of the
industry’s premier third-party transfer
agents and has been servicing the back-office
mutual fund industry since 1973. Boston Financial
is a partnership between DST Systems, Inc. of
Kansas City, Mo., and State Street Bank &
Trust Co. of Boston, Mass. This partnership has
enabled Boston Financial’s clients to utilize
DST’s industry-leading software and technology
while benefiting from the institutional support
and global reach of State Street.
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