Managed-account standards attract converts; SEC completes taxonomies

Data tags unveiled
The Securities and Exchange Commission has completed two taxonomies that define data in mutual fund prospectuses.
The Securities and Exchange Commission approved a proposal in May that would require mutual funds to use computer XBRL tags to label key information about fees, performance and strategies. The idea is to allow investors and analysts to access data in XBRL.
The taxonomies are designed for the risk-return summary sections of prospectuses.
The SEC is encouraging users and creators of investment company information to review the taxonomies (see the link below).
Any comments received by Nov. 24 might be included in the final taxonomies that are to be used in mutual fund filings, starting in 2009.
Visit the SEC website to read the rule proposal on mutual fund risk-return summaries. To review and comment on the taxonomies, visit XBRL US. Visit the story “Advisers may benefit from XBRL shift” for more on how the standards will ultimately help advisers.

One standard for all
Amid all the turmoil last month, UBS Financial Services Inc. as well as the Smith Barney and Global Transaction Services units of CitiGroup Inc. agreed to start using the Depository Trust and Clearing Corp.’s standards-based managed-account system. These companies are located in New York.
The Money Management Institute developed the standard over the past six years.
DTCC’s managed-account service is a centralized online platform that automates communications among sponsors, investment managers and service providers.
Everything from account opening to maintenance throughout an account’s life cycle has been automated.
According to the MMI of Washington, there are $1.4 trillion of managed-account assets. For more information, visit the DTCC online.

Davis D. Janowski is the technology reporter for InvestmentNews.

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