Client Funds Segregation Reporting

SolveXia is a technology provider offering powerful and versatile process automation software. Our solution is used by financial institutions for the preparation, review and reconciliation of daily reports relating to the segregation of client funds. These reports are used to monitor key month-to-month movements and inform senior management as well as the relevant stock or futures exchange.

Reporting on the segregation of client funds is a critical task performed by financial institutions as it is a regulatory requirement to safeguard the assets that are deposited with clearing brokers. These reports also enable senior management to understand the implications of decisions that are made on investment of the funds.

Challenges facing organisations

• As a result of the large volumes of data involved and substantial amount of manipulation required for the segregation and reconciliation of client funds, staff are unable to report the position as frequently as desired by senior management.
• Time pressures for staff required to prepare client segregation reports as part of their regular daily and month-end practices leads to human error risk, job dissatisfaction and reduced time for analysis and communication of results.
• Key person dependency risk becomes a feature with intimate knowledge of the client segregation reporting process being lost when staff members leave the firm.
• The traditional, manual method of preparing client segregation reports offers minimal audit trail or control over the preparation, validation and reconciliation of the report.
• There is limited opportunity to improve current procedures without automation due to a lack of clear and logical documentation and a poor understanding of the process beyond the subject matter expert.
• The time and cost constraints associated with sourcing IT or programming resources to automate their manual processes has proven prohibitive.

How SolveXia helps

SolveXia allows users to create an end-to-end automated Client Funds Segregation Reporting Process allowing users to produce and analyse results on-demand. Source data files including product system extracts and FX rates in various formats including Excel, Text/CSV and Access are copied to the process and manipulated to reconcile the segregation of client funds.

The automated process can be configured by staff without the need for IT involvement or a large IT development  project. As SolveXia works WITH your source files, users simply add "steps" to interact with (and manipulate) their files at each stage of the process.

Users also utilise SolveXia's workflow functionality to designate steps in the process for the review and approval of the reporting outputs. Key output files are automatically emailed to key recipients such as product control and finance team with functionality included allowing for the approval or rejection of the results. Responses including feedback (if any) from the reviewers are automatically recorded in the process documentation.

To further enhance the control and audibility of the reinsurer premium calculation process, every change to the steps and files in the process are recorded and automatically documented in SolveXia. Users can also choose to store a locked-down historical snapshot each time the process is run, including the process steps and the files used. SolveXia also maintains an up-to-date and live specification of the Client Funds Segregation Reporting process describing each step in enough detail to allow a user to reproduce the entire process manually.

SolveXia has templates that can be used as a guide to configuring your own end-to-end Client Funds Segregation Reporting processes.

Benefits

Our users have experienced the following benefits:

1. An end-to-end automated Client Funds Segregation Reporting process that includes the collection of data files, manipulation and calculation of total funds at brokers, client balances and house/prop balances as well as the reconciliation of any differences and the communication and approval of final results within the organisation.
2. A client segregation report that can be produced on a daily rather than monthly basis allowing for more effective monitoring of any movements.
3. A process that is configured in days without the need for IT or programming skills thereby replacing traditional time consuming and error prone manual processes.
4. Unlimited scalability to automate other spreadsheet-based processes, adding a layer of control and auditability without removing the flexibility that only spreadsheets can offer.
5. A full audit trail that provides easy access to locked-down historical information thereby reducing audit costs and increasing management control.
6. Elimination of key-person dependency by transferring knowledge of the process from individuals to the business.
7. Clear and up-to-date process documentation that provides a greater understanding of the various processes within the organisation.

Frequently asked questions

Some answers to the questions you might have about this solution

1. Can it be customised for my business? Yes. SolveXia provide you with a pre-prepared solution that gets you up and running, and then configure it to meet your specific needs.
2. Can I customise it myself or do I have to get SolveXia to do it? SolveXia is designed for use by non-technical/non-I.T. users, so that the subject matter experts can design and configure their processes to meet their exact needs.
3. How long does it take to set up? We can have you up and running with 3-5 business days.
4. Does it cost more for me to run additional processes (i.e. other than the Schedule 1A)? No, there is no additional cost for running more processes.
5. How do I get more information? Please email us on sales@solvexia.com or call our offices on 61-2-9386-0202

Output from Client Funds Segregation Reporting processes

SolveXia users are able to configure processes that become end-to-end solutions and include the ability to populate final reports in Excel. Users of the Client Segregation report receive an Excel workbook containing a final statement and breakdown of client funds, a reconciliation across all currencies as well as detailed data sheets allowing users and reviewers to drill down and analyse the final results.