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Improving the Process of Approval of Large Transaction Deals Improving the Process of Approval of Large Transaction Deals in the Offshore Department of XYZ Mutual Funds Investment in the Offshore Department of XYZ Mutual Funds Investment
CompanyCompany
Prepared for XYZ Mutual Funds Prepared for XYZ Mutual Funds Investment CompanyInvestment Company
July 8, 2014July 8, 2014
Prepared by: Alfredo Garcia
Executive SummaryExecutive Summary
Offshore Procedures to process Large deal transactions Offshore Procedures to process Large deal transactions updateupdate
Issues with current workflowIssues with current workflow
Takes 50% longer than the Domestic DepartmentTakes 50% longer than the Domestic Department Good Order Review is handled fully by department directorGood Order Review is handled fully by department director Customer satisfaction with process is 3.5 points out of 5Customer satisfaction with process is 3.5 points out of 5
Benefits and Risks of New Benefits and Risks of New ProcedureProcedure
BenefitsBenefits
• Reduces the time by 50%Reduces the time by 50%• Reduces AML riskReduces AML risk• Reduces Trade Control riskReduces Trade Control risk• Increase customer Increase customer
satisfactionsatisfaction
Risks
• Mid-level management pressure
• Risk oversight issues to meet
time expectancy
• Less managers in the Offshore
Department for review
RecommendationRecommendation
Update the Offshore Procedure to mirror the procedures in Update the Offshore Procedure to mirror the procedures in place in the Domestic Departmentplace in the Domestic Department
Process of adaptation of new proceduresProcess of adaptation of new procedures Perform Blind test scenariosPerform Blind test scenarios Procedure goes live fro 3 months and then survey (internal Procedure goes live fro 3 months and then survey (internal
and external)and external) Training for managers and directors (Trainers are members Training for managers and directors (Trainers are members
of the Domestic Department management staff.)of the Domestic Department management staff.)
IntroductionIntroduction
This report will show the following:This report will show the following:
Process of the Domestic DepartmentProcess of the Domestic Department
Survey results for the process from both departmentsSurvey results for the process from both departments
Benefits of adapting the Domestic ProcedureBenefits of adapting the Domestic Procedure
Adaptation process and scheduleAdaptation process and schedule
Domestic Side ProcessDomestic Side Process
Use of two managers doing the good order reviewUse of two managers doing the good order review
Steps: 1) Sell order receivedSteps: 1) Sell order received
2) Manager A reviews AML, Manager B reviews 2) Manager A reviews AML, Manager B reviews Trade Control Trade Control
3) If approved by managers, sent to Director for 3) If approved by managers, sent to Director for final approval final approval
4) Transaction Submitted 4) Transaction Submitted
Offshore ProcessOffshore Process
Steps:Steps:
1) Sell order received1) Sell order received
2) Director performs good order review (AML and 2) Director performs good order review (AML and Trade Control)Trade Control)
3) Director makes final decision3) Director makes final decision
4) Sent to trade desk4) Sent to trade desk
Customer Satisfaction Results SurveyCustomer Satisfaction Results Survey
Benefits and Risks of New ProcedureBenefits and Risks of New Procedure
BenefitsBenefits
Lessens the amount of time for processLessens the amount of time for process
Domestic Department (longest time)Domestic Department (longest time)
Offshore Department (Fastest time)
Benefits and Risks of New ProcedureBenefits and Risks of New Procedure
BenefitsBenefits
Minimize Risk of AML and Trade Control violationsMinimize Risk of AML and Trade Control violations
Two extra managers verify the tradeTwo extra managers verify the trade
Increase approval rating from customersIncrease approval rating from customers
Domestic satisfaction rate is 45% higher for the same Domestic satisfaction rate is 45% higher for the same Transaction type due mainly from procedureTransaction type due mainly from procedure
Benefits and Risks of New ProcedureBenefits and Risks of New Procedure
RisksRisks
Managers pressure from decision makingManagers pressure from decision making
Risk oversight trying to meet lower time expectancyRisk oversight trying to meet lower time expectancy
Fewer managers in Offshore DepartmentFewer managers in Offshore Department
RecommendationsRecommendations
To adapt the process used in the Domestic DepartmentTo adapt the process used in the Domestic Department
Steps to follow for successful adaption include:Steps to follow for successful adaption include:
1) Training1) Training
2) Testing2) Testing
3) Support Team3) Support Team
4) Review of Process4) Review of Process
Steps for AdaptationSteps for Adaptation
Training ScheduleTraining Schedule
Steps for adaptationSteps for adaptation
Testing Mock-Blind Scenarios. Total 200 transactionsTesting Mock-Blind Scenarios. Total 200 transactions
Data collected: Correct, Incorrect, Reasons for Not In Good Data collected: Correct, Incorrect, Reasons for Not In Good OrderOrder
Support Team available: Help line and email pointSupport Team available: Help line and email point
Review of Process: After 180 days conduct a survey of Review of Process: After 180 days conduct a survey of satisfaction anonymously internally and external client satisfaction anonymously internally and external client surveysurvey
Internal Survey Internal Survey
Rate chart: From 1 to 5 (1 being the worst)Rate chart: From 1 to 5 (1 being the worst)
How comfortable do you feel with the new procedure? How comfortable do you feel with the new procedure?
Rate your level of confidence with AML?Rate your level of confidence with AML?
Rate your level of confidence with Trade Control?Rate your level of confidence with Trade Control?
Rate your level of comfort with the Support Team?Rate your level of comfort with the Support Team?
Additional Comments:Additional Comments:
Client SurveyClient Survey
Rate chart: From 1 to 5 (1 being the worst)Rate chart: From 1 to 5 (1 being the worst)
Rate your experience of your latest transaction.Rate your experience of your latest transaction.
Rate your experience of your prior transactionRate your experience of your prior transaction
If you rate Question 1 higher than Question 2, please add If you rate Question 1 higher than Question 2, please add comments below on reason/scomments below on reason/s
Mission of ChangeMission of Change
Client SatisfactionClient Satisfaction
Knowledge Knowledge
Good order reviewGood order review
ComplianceCompliance
ReferencesReferences
Inman, P. (2012) Inman, P. (2012) The GuardianThe Guardian Brazil's economy overtakes UK to become Brazil's economy overtakes UK to become world's sixth largest. Retrieved on July 1, 2014 from world's sixth largest. Retrieved on July 1, 2014 from http://www.theguardian.com/business/2012/mar/06/brazil-economy-http://www.theguardian.com/business/2012/mar/06/brazil-economy-worlds-sixth-largestworlds-sixth-largest
Morningstar (2014) U.S. Mutual Fund Investment Stewardship Survey Morningstar (2014) U.S. Mutual Fund Investment Stewardship Survey Retrieved on June 30, 2014 Retrieved on June 30, 2014 http://corporate.morningstar.com/us/documents/MutualFunds/WP_Eqhttp://corporate.morningstar.com/us/documents/MutualFunds/WP_Equity_Stewardship_031914_FINAL.pdfuity_Stewardship_031914_FINAL.pdf
AppendixAppendix
Name: Jane DoeName: Jane Doe
Business: XYZ Mutual Fund Investment CompanyBusiness: XYZ Mutual Fund Investment Company
Location: Short Hill, New JerseyLocation: Short Hill, New Jersey
URL: URL: [email protected]@XYZ.com
Email: Email: [email protected]@XYZ.com
Name: John SmithName: John Smith
Business: XYZ Mutual Fund Investments CompanyBusiness: XYZ Mutual Fund Investments Company
Location: San Francisco, CaliforniaLocation: San Francisco, California
URL: URL: [email protected]@XYZ.com
Email: Email: [email protected]@XYZ.com
