Income Control manages the receipt of external income vouchers or distribution statements and cash payments, and allocates and settles the income to individuals and funds, across multiple nominee structures.
Periodic income distributions can create significant ‘peak load’ operational pressures where manual and semi-automated processes are relied upon. Manually handled income vouchers and distribution statements can be expensive, lack scalability and transparency, and carry significant operational risks that adversely impact customer service.
Income Control ensures that expected values are received and the settlement of reinvestment units or cash is correct for unit holder accounts held on external transfer agency, registry, platform or policy holder systems. Cash received in the unitholder’s bank account is reconciled to the notified and expected values of distribution statements.
Distribution Statement Processing
Income Control automates all stages of a processing external fund income distributions, and delivers a repeatable operating model end-state and eliminates the need for firms to undertake a process re-engineering exercise to increase efficiency in the following activities:
- Creation of expected dates for receipt of distribution statements
- Monitoring the receipt of distribution statements
- Import of unit holder values
- Import of distribution statements or income vouchers
- Pre-calculation validations
- Generation of income detail records
- Monitoring of cash receipts and reconciliation to bank statements
- Updates to income detail records upon receipt of cash
- Notification to downstream systems
Distribution Statement & Income Voucher Capture
- Determines statement due dates and monitors the expected arrival of income vouchers and distribution statements from external fund managers, ensuring that all expected statements have been received.
- Captures distributable income as cents per unit (cpu) or pence per unit (ppu), distribution value or crediting rates.
Unitholder Allocation & Distribution Life-cycle
- Allocates distribution amounts to unit holders using externally provided holdings from transfer agency, registry, platform or policy holder systems.
- Generates distribution settlement views, accrual journals, reinvestment orders and cash settlement journals throughout the processing life-cycle.
- Creates internal records and allocations for each registered unit holder in the fund asset which provides status control for the management and hand-off to external systems.
- Allows users to view the status of each distribution across multiple ex-dates.
- Allows for data to be reloaded at any time and provides exception management.
- Distribution statement control record allows navigation from summary to unit holder detail levels with ability for user to approve or re-run processing.
- Rules and calculation engine provides flexibility and ease of implementation of distribution category changes.
Reconciliation & Validations
- Undertakes Reconciliations of statement values to bank accounts, and (optionally) extends to Case Management for independent end-to-end life-cycle management of cases associated to one or many reconciliation items.
- Undertakes all required validations such as confirming units on statements agree to recorded values and ensuring settlement option is as expected for unit reinvestment or cash.
- Where settlement is by reinvestment, units reinvested are checked to ensure calculations are correct.
Integration & Extensibility
- Uploads, merges and validates data from multiple sources, including accounting systems, registry and transfer agencies, and external data providers, through pControl's native Data Manager.
- Optionally, where distributions are to be processed through an interfund structure, Income Control can utilize Income Processing capabilities.
Service Level Aware
All pControl solutions are Service Level Aware and can internally monitor and escalate late running events such as late data arrival, and late override / approvals and final release within operational cut-offs and processing calendars.
Investment operations teams can monitor Service Level compliance through the following dashboards:
- Production Summary dashboard to deliver progress monitoring of all distribution statement processing activities for each processing date
- Attention Status Monitor dashboard to provide real-time exception monitoring and aging for any activity with critical completion or Service Level Agreement deadlines
Income Control is stakeholder and auditor friendly through a full audit trail of all income voucher and distribution statement processing activity, while delivering rich client SLA reporting.