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 infrastructure,” 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.
* * * *
The information and comments above may include forward-looking
statements respecting DST and its businesses. Such information and comments
are based on DST's views as of today, and actual results could differ.
There could be a number of factors affecting future results, including
those set forth in Form 8-K/A dated March 17, 2003 filed by DST with the
Securities and Exchange Commission. All such factors should be considered
in evaluating any forward-looking comment. The Company will not update
any forward-looking statements in this press release to reflect future
events.
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