Why Outsourcing Factsheets and Minimum Disclosure Documents is Better for Business

December 2018

In light of the FSCA guidelines (previously known as FSB) that require SA managers of collective investment schemes to provide factsheets and minimum disclosure documents (MDDs) for each investor portfolio, managers are understandably feeling the heat of the additional administrative burden. Not only are SA’s asset managers faced with stiff economic headwinds, increased local competition and tougher regulatory frameworks, they are now expected to increase communications with investors in a very specific way.

Fortunately, the rapid development of technology, paired with innovative thinking within the financial services sphere, is creating new ways of meeting legislative requirements while simultaneously improving customer relations (and profit margins).

Take factsheets and MDDs, for example, which fund managers are required to prepare for each portfolio (and update quarterly). By simply outsourcing this requirement to a savvy, trusted technology provider, asset managers can actually leverage each MDD and factsheet as an additional marketing touch point.

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So how does it work?

The key is to work with the right technology partner, and determine the true value they bring to the preparation of documents. For example, can the provider offer a cutting edge, automated solution? What is the turnaround time, and does the solution allow for customization?

At Advicement Investment Services, we have created a smart, automated solution that is designed to boost efficiencies for each client. For example, once our client-approved templates are set up, the turnaround time for the document generation is typically one business day (allowing for frequent production).

Benefits and advantages

Having recognized the opportunity within MDDs to strengthen client relationships, our solution is also designed to create more engaging and accessible documents – for example, we include bespoke calculations and charts, which are packaged within a form that reflects the asset manager’s own branding and in-house style. This highly tailored document design and presentation has already proven to be exceedingly beneficial for both asset managers and their investors.

In addition to saving on time and costs, this outsourced solution also eliminates errors and inconsistencies – with the third party provider providing a key fact-checking element. This is a critical part of the thorough preparation of documents and also ensures that asset managers remain within legal and regulatory frameworks.

Notably, given the new regulations around data privacy (PoPI and GDPR specifically), it is important to trust the outsourcing of documents to providers that have robust data management frameworks in place. Again, these are questions to ask technology providers at the outset. What kinds of data governance structures are in place, and do they follow standard industry practice?

Get in touch and outsource

In a cutthroat and increasingly crowded financial services market, outsourcing critical elements such as MDDs can provide managers with much needed differentiation – while simultaneously boosting operational efficiencies and achieving major cost savings. And of course, it also frees up your team to concentrate on what they do best…