Reporting

Fee Controlling for Custodian Banks

Low-maintenance monitoring of fees and reimbursements.

Effectively meet the challenges arising from BaFin’s Custodian Bank Circular (Depotbankrundschreiben) through business process outsourcing.

Circular 6/2010 (WA) dated 2 July 2010 (Custodian Bank Circular) from the Federal Financial Supervisory Authority (BaFin) has resulted in closer scrutiny of requirements on custodial banks under the Investment Act. According to the Circular, management fees and reimbursements charged to investment funds by asset managers are subject to auditing, the complexity of which can drive up costs.

IDS GmbH – Analysis and Reporting Services (IDS) offers custodian banks a managed service for calculation and validation of the fees. The support ranges from assistance with daily monitoring of fee components in net asset value, to verification of complex outperformance fee calculations.
 
As an independent service provider, IDS is able to offer the service based on either Model 1 or Model 2 of the Custodian Bank Circular. Under Model 1, the asset management company and the custodian bank both utilize the IDS service. With Model 2, the custodian bank uses the IDS service as its own system for fee controlling.

Access to the long-standing expertise of IDS in fee calculation, along with utilization of the economies of scale offered by IDS – one of world’s largest managed service providers – helps clients meet their regulatory obligations with minimum effort, and effectively curb human resource and material cost escalation.

Related Products

Outperformance Fee