Global Broker Dealer/Investment Bank

Mutual Fund Sub-Accounting Conversion

Client Challenge

  • The Mutual Funds Division of the firm historically leveraged one of the top Sub-Accounting Vendor in the business.
  • The firm had made a decision to take over another broker dealer who leveraged another Sub-Accounting Vendor. Due to a firm-wide Integration of the two firms, all sub-accounted positions needed to be in parity and on the same Sub-Accounting Platform prior to the firm-wide Integration.
  • The Mutual Fund Division needed guidance/assistance in choosing a target Sub-Accounting Platform and executing the conversion of all sub-accounted positions onto the target platform prior to the firm-wide broker dealer Integration.  There were approximately 15 million sub-accounted positions across the two broker dealers.

Our Approach

  • The project team performed a detailed vendor assessment including a cost benefit analysis of the two Sub-Accounting Vendors to assist the firm in deciding which vendor to choose as the target Sub-Accounting Platform.
  • The project team performed a detailed current state analysis of how the two vendors performed sub-accounting processing at the two firms. A gap analysis was conducted to identify all functional discrepancies needed to perform sub-accounting processing on the target platform.
  • The project team worked with the Broker Dealer and the target Sub-Accounting Vendor to establish and test NDM Connectivity between the two organizations.
  • Based on the analysis, requirements were gathered and documented with the working group and all cross-functional groups/divisions to address the functional gaps and pre-conversion initiatives prior to the conversion.
  • A detailed conversion runbook was documented capturing the all the key activities and milestones over conversion weekend. This included checkpoint calls to touch base on key milestones and validations.
  • Two Integrated Conversion Mocks and One Dress Rehearsal were executed to test all the functional changes and the Conversion Code implemented by the Sub-Accounting Vendor and the Broker Dealer Technology Team. This included performing User Acceptance Testing in a post-conversion environment (Trade Processing, Money Movement etc.) including the RECON Systems.
  • A detailed roll-back plan/strategy was also developed with the Sub-Accounting Vendor and the Broker Dealer in the event the conversion had to be called off in the event of critical issues.

Solution/Client Benefit 

  • A successful conversion was accomplished over a 3-day weekend that resulted in the implementation of  all sub-accounting positions from one Sub-Accounting Platform to another.
  • A high-level Conversion Approach and Plan was developed to replace the existing Sub-Accounting Vendor. These documents identified requirements, cutover plan, working assumptions, test approach, and timelines required to convert all mutual funds from the existing sub accounting vendor to the new Sub-Accounting Vendor.

Gartland & Mellina Group — A Management Consulting Company