How eConsent Adoption Can Help Reduce Your Compliance Costs

The Securities and Exchange Commission (SEC) recently adopted amendments to Shareholder Report Requirements, Rule 30e-3 and Fund Advertising Rules. These amendments fundamentally change shareholder reports, requiring open-end funds to provide new Tailored Shareholder Reports on paper unless the shareholder elects to receive them electronically.

The effect on funds is twofold: funds will be required to mail paper copies of shareholder reports unless a shareholder opts for electronic delivery (eConsent). Funds will incur increased costs due to the print mail delivery requirement. Funds may also experience a spike in call volume upon the first mailing as shareholders question the new material received, which could result in long hold periods and unhappy customers.

Funds can offset the expense and effort of delivering paper by increasing shareholder eConsent adoption rates. Notifying millions of shareholders, tracking and managing their responses, and achieving eConsent adoption rate goals could present an enormous challenge to a fund, however.

At SS&C, our end-to-end eConsent notification and solicitation solution can ease a fund’s compliance burden and help you achieve eConsent adoption without compromising your existing service levels. Highlights of our solution include:

• Interactive Website—Access a secure, client-dedicated web application to capture email addresses, mobile phone numbers and eConsent. Categories will be provided for customers to indicate their eConsent preferences for standard communications (i.e., statements, tax forms, compliance-related notifications). The data is dynamically stored within SS&C’s secure platform.
• Toll-Free Number—Speak with a live customer care representative who will capture the requested information, and offer client-approved scripted responses to inquiries, as well as answers to frequently asked questions. Splitting out these calls to a separate line or prompt can also benefit your routine call center by lessening the impact for increased calls related to inquiries regarding this mailing.
• Mail—Send enclosed response form to be imaged into our intelligent automation platform, reviewed for good order and captured on our system. The notification will have barcode technology to aid in the management of the workflow.

Regulatory requirements often require firms to execute one-time business events, leaving their teams stretched beyond capacity and running the risk of not meeting regulatory requirements in time. SS&C offers specialized expertise and deep experience in managing time-sensitive business events. Plus, we operate in a secure systems environment with industry-leading security protocols, giving you and your shareholders peace of mind that sensitive information stays secure.

To learn more about how SS&C can quickly design and set up a custom eConsent program for you, download our "eConsent Notification and Solicitation" brochure or contact us directly.